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2018 (11) TMI 1826 - AAR - GSTClassification of goods - rate of GST - solar powered robotic cleaning systems (RCS)/ E4 supplied by the Applicant - Whether classified as solar power based device’ in terms of sub-clause (b) of Entry no. 234 of Notification no. 1/2017-Integrated Tax (Rate) dated 28 June 2017? - supply of RCS along with provision of ancillary services, erection and commissioning services) by the Applicant - Composite supply as per Section 2(30} of the CGST Act or not - HELD THAT:- The functioning of the said robotic cleaning systems, as is apparent from the submissions made by the applicant it is observed that the applicant is engaged designing, ‘supplying and installation of solar powered Robotics Cleaning System for cleaning photovoltaic solar panel arrays in solar parks. Elaborate working and functioning of the said systems have been discussed in the preceding paras, on the basis of submissions made by the applicant. From the submissions of the applicant, it is observed that the said product, is working on solar power and thus, the same merits classification chapter heading 8479 and also qualifies as a ‘solar power based device’ in terms of sub-clause (b) of Entry no, 234 of Notification no. 1/ 2017 integrated Tax (Rate) dated 28 June 2017 (as amended from time to time) liable to GST @ 5% - Apart from supply of ‘‘robotic cleaning system” the applicant Is also engaged in installation of same. Hence, the applicant has also raised the question as to whether the supply of RCS along with provision of ancillary services, erection and commissioning services) by the Applicant construes as a Composite supply as per Section 2(30) of the CGST Act. In the instant case, indeed there are two supplies. Firstly, there being a supply of goods, i.e. “robotic cleaning systems” which qualifies as ‘solar power based device’ in terms of sub-clause (b) of Entry no, 234 of Notification no. 1/2017 integrated Tax (Rate) dated 28 June 2017 (as amended from time to time) liable to GST @ 5%. Secondly it is supply of service also, related to installation, erection commissioning services of the said robotic cleaning systems supplied by the applicant. Therefore, the same comprises of two supplies and one of which, that is supply of robotic cleaning systems is a principal supply. We agree with the contentions of the applicant that supply of RCS and its erection, installation and commissioning services are naturally bundled - that in order to make the RCS operational, it is essential that the same be erected and installed atop the solar panels, by way of nuts and bolts - in the instant case, the rate of tax applicable to this composite supply shall be the rate applicable on the principal supply, i.e., 5%.
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