It is a proposed system designed to eliminate human involvement in the electricity system. IOT (Internet of things) is the network of physical things with electronics software, sensors, and connectivity to enable objects to collect and exchange data. IOT based automatic meter reading is the technology of automatically collecting data energy meter and transferring data to the server for billing process and if there is any tempering then also detectable. The internet connection to meter collect the data and display data on the LCD by which we can read and understand the things that are going on the system. Current drawn also calculated by the current transformer that connected in series with the load will be shown on the LCD. This data transfer to server unit at MSEB. MSEB is not a technical word but it is electricity distribution board “Maharashtra State Electricity Board”. The data is received by the internet and whenever a key is pressed microcontroller send SMS through the internet to the transmitter to get the reading of the meter. It is difficult to manual reading and calculating bill of individually. This will help for the proper and accurate reading of billing process. By taking all these features that can be done by IOT based smart energy meter easily.