What is tax on sale of electricity?
Tax on sale of electricity is a state levy on the units a licensee sells, separate from electricity duty in some states. Also called ToSE, TOSE, tax on sale.
- Plain English
- Official sources
- Bill terms A–Z
Tax on sale of electricity on your bill
Some states tax the sale of electricity as well as its use. Maharashtra calls this ToSE.
The discom collects it on the bill and pays it to the state.
From 1 December 2025, Maharashtra charges 28.94 paise a unit on industrial and commercial sales in city areas of MSEDCL.
Example: 1,000 units x Rs 0.2894 = Rs 289.40.
Homes in Maharashtra are not in this notification. Check which levies your category pays.
Related terms
Official sources
- MSEDCL Commercial Circular No. 354 (15-04-2026), forwarding GoM Notification VVK-2018/CR-161/Energy-1, 19-12-2025, notification
“Maharashtra Tax on Sale of Electricity Act, 1963 (Mah. XXI of 1963)” - MSEDCL Commercial Circular No. 354 (15-04-2026), forwarding GoM Notification VVK-2018/CR-161/Energy-1, 19-12-2025, notification
“in respect of sale of electricity to industrial or commercial consumers” - MSEDCL Commercial Circular No. 354 (15-04-2026), forwarding GoM Notification VVK-2018/CR-161/Energy-1, 19-12-2025, notification
“with effect from the 1 December,2025”
Read on 17 October 2026. Your State regulator’s rules and your discom’s bill have the final word.