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This paper proposes a generalized hysteresis current controlled three level voltage source inverter (VSI) based single phase shunt active power filter (SAPF). The three level inverter topologies considered in this paper are H-bridge and diode clamped inverters. A generalized hysteresis current control with multiband hysteresis modulation has been used to control the voltage source inverters in the shunt active power filter. The performance of the shunt active power filter is verified using PSCAD/EMTDC simulation studies for single phase distribution system supplying a nonlinear load.