Home Case Index All Cases GST GST + AAR GST - 2021 (2) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (2) TMI 1292 - AUTHORITY FOR ADVANCE RULING, RAJASTHANRate of tax - construction and installation of solar power unit as a part of the EPC contract - irrigation system has to be operated on solar power - scope of the works contract - HELD THAT:- is clear that the applicant is neither manufacturing renewable energy devices & parts thereof nor providing Service by way of construction or engineering or installation or other technical services in relation of setting up of renewable energy. The tender is for supply of the lift irrigation project as a whole and not only for solar power generating system. The applicant will be undertaking the construction of a lift irrigation project for irrigation (Sprinkler system) in various villages of Banswara district, where solar power would be used only for power, which is a small fraction of the whole project. Whereas the applicant has claimed that the whole project system is a “solar power device” which is incorrect and contrary to their own contention made in their application. From the definition of the Solar power device & the nature of work to be undertaken by the applicant, it cannot be classified as solar power device, resultantly would not be covered under the entry 234 of Schedule I of the notification No. 1/2017 & entry no. 38 of Notification No. 11/2017 -Central Tax (Rate) dated 28.06.2017. The activity proposed to be undertaken is a composite supply of works contract, the rate of tax in given service shall be determined in accordance with the Notification No 11/2017-CT (Rate) dated 28.06.2017, as amended from time to time. As per tender document the setting up the irrigation project including Construction of Intake well, Pump House, Panel Room and Supply, Erecting/Laying, Testing Commissioning Submerge V.T. Pumps, Rising Mains, Distribution network of Pipe Line at Chaks, O&M for Eight years including installation of Solar Power unit of 5x100 KW capacity, EPC contract on turnkey basis by the applicant is a Works Contract of Composite Supply. This composite supply is a mixed of goods and services. Since this supply is undertaken for a Water Resources Department, a unit of Government of Rajasthan, hence shall attract GST @12% (6% CGST and 6% SGST) under S. No. 3 (Heading 9954) (iii) of Notification No. 11/2017, dated 28.06.2017.
|