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Centre asks states not to impose tax/ duty on power generation

The central government has asked states that they have no power to impose any tax or duty on electricity generated from any source – coal, hydro, wind, or solar and any such levy is illegal and unconstitutional. In a circular, the Ministry of Power on October 25, said it had come to the notice of the central government that some state governments had imposed additional charges on generation of electricity from various sources under the guise of development free/charges/fund.