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2022 (2) TMI 1041 - AAR - GSTClassification of goods - rate of GST - Solar Pump - Controller - Structure - Solar Water Pumping System (comprising of Solar panel + Controller + Solar Pump + Structure) - Solar panel + Solar Controller + Solar Pump - Solar Pump + Solar Panel - Solar Pump + Controller - Solar Panel + Controller - Supply of Solar water pumping system as a whole comprising of goods (Solar Panel + Solar Controller + Solar Pump 4 Structure) along with the installation of Solar water pumping system for drinking water application. Solar Panels - HELD THAT:- Solar Panels (also known as “Photovoltaic/PV Panels”) are made of solar cells (also known as “PV cells “) which are connected to each other in series and parallel connection. Solar cells are made up of silicon semi-conductor material which converts the energy generated from sunlight into electrical energy. The electrical energy generated by conversion of sunlight is known as Solar power. Solar PV modules/panels are to be positioned at proper inclination to collect maximum energy from the sunlight - Under the GST tariff, SI. No. 234 of Schedule-I of GST Tariff has a specific entry for Solar PV cells which is taxable at the rate of 5%. Solar pump - HELD THAT:- The solar pumps whether AC or DC have a low voltage capacity and hence in solar water pumping systems, solar pump sets are fitted with solar charge controllers to maintain the frequency of current supplied to them - Entry 234 of Scheduled, specifically covers the parts for manufacture of 'Solar Power Generating System' or 'Solar Power based devices' - Hence, solar pump is solar power based devise and is classifiable under SI. No. 234 of Notification No. 0172017 - CT(Rate) dated 28.06.2017 and taxable at the rate of 5% GST. Solar Controller - HELD THAT:- Solar Controller is technically known as a Charge controller. It determines how' much power should be injected into the batteries for optimum performance. It measures the efficiency of the entire system as well as the operating life of the batteries. It also protects the battery bank from overcharging. Whenever a battery is used, a charge controller is also used to ensure longer battery life - controller is neither solar power based devise nor part of solar power based devices and fall under chapter heading 85 of GST Tariff which has a specific entry for Electrical transformers, static converters and inductors as 8504 - controller attracts 18% rate of GST. Structure - HELD THAT:- STRUCTURES attracts 18% rale of GST. Solar Water Pumping System - HELD THAT:- Since, Solar Water Pumping System is not the whole device it is made of Solar panel. Controller, Solar Pump, Structure etc, includes procurement, development, testing, commissioning etc hence, it is a mixed supply for goods and services. The Solar Water Pumping System (comprising of Solar panel + Controller + Solar Pump + Structure) is a Mixed Supply and highest rate of GST will be applicable amongst goods supplied by the applicant. What should be the classification and GST rate on Supply of Solar water pumping system as a whole comprising of goods (Solar Panel + Solar Controller + Solar Pump + Structure) along with the installation of Solar water pumping system for drinking water application? - HELD THAT:- In the present case, the applicant is proposed to supply the functional solar water pumping system as a whole, which include supply, installation, commissioning & maintenance. The proposed supply including installation. commissioning & maintenance would fail under the ambit of works contract service as per Section 2(119) of CGST Act.2017 and attracts 18% GST - the proposed supply comprising of Solar Panel, Solar Controller. Solar Pump, Structure along with the installation shall attract GST @18% under S. No. 3 of Heading 9954 (ii) of Notification No. 11/2017. dated 28.06.2017.
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