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2023 (3) TMI 1247 - AAR - GSTClassification of goods - solar inverter manufactured by the applicant fall under entry no. 234 of Schedule -I of the Notification 1/2017 - Central tax (rate) dated 28.06.2017 or not - Solar Batteries manufacture by the MNS and sold to the manufactures/trades who further use the same in Solar power plants shall qualify as parts of solar power plants and fall under entry no. 234 of Schedule-I of the Notification 1/2017 -Central tax (rate) dated 28.06.2017 or not - solar inverter along with solar battery and solar panel together in package, will fall under entry no. 234 of Schedule -I of the Notification 1/2017 - Central tax (rate) dated 28.06.2017 or not. HELD THAT:- The term “Solar Power Generating System” has not been defined under GST Act. Generally, the solar power generating systems are the systems which absorb sunlight and convert it into electricity which can be put to further use - Further it has also been mentioned that “Solar Power Generating System” has been defined under “solar power-Grid connected ground mounted and solar rooftop metering regulation-2014” issued by State of Goa. As per this regulation Solar Power Generating System means “a grid connected solar generating station including the evacuation system upto the grid inter connection point”. A solar power plant produces electricity directly from sun by the interaction of sunlight with a solar panel made of semiconductor material. The power provided is direct current (DC) electricity. A solar power plant consists of an array of modules generating DC electricity, an inverter and sometimes battery storage back up. The applicable GST Rate for supply of equipment for a solar power generating system (composite supply) will be 12% (The value can be equivalent to 70 % of the plant cost). However, for installation and engineering services, EPC companies and installers will need to raise a separate works contract equivalent to 30 % of the overall bill with a GST rate of 18%.
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