2023 (8) TMI 1297 - AAR - GST

Classification of goods - rate of GST - HSN Code - used/running Wind Turbine Generator (WTG) / Wind Mill with accessories for sale purpose - Wind Turbine Generator (WTG)/ Wind Mill installed land - HELD THAT - The transaction of the applicant involving the sale of the wind mills is covered under Clause 4 of Schedule II of the CGST Act 2017 as the transaction involves disposal of business assets. Accordingly the activity of sale of wind mills amounts to supply of goods - entire unit of wind mill is proposed to be supplied as such without dismantling the same. Supply of wind mill with its parts and accessories is a composite supply of wind mill and liable to tax @ 6% CGST with effect from 01.10.2021 vide entry no. 201A of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 as amended vide Notification No. 08/2021 Central Tax (Rate) dated 30.09.2021. Sale of land on which the wind mill is embedded - HELD THAT - It is ascertained from the Commercial Taxes and Registration Department Tamil Nadu that as per the prevailing practice in cases of transfer of windmill and the embedded land windmills are not considered as an immovable property and stamp duty is being levied only on the transfer of land under the Indian Stamp Act 1899. Be it so according to GST laws sale of land is not liable to GST as the sale of land shall be treated neither as supply of goods nor as supply of services in terms of clause 5 of Schedule III of the CGST Act 2017.

Summary

Issues involved:
The judgment deals with the rate of GST for used Wind Turbine Generator (WTG) / Wind Mill, the HSN Code for Wind Turbine Generator (WTG) / Wind Mill, the rate of GST for Wind Turbine Generator (WTG) / Wind Mill installed land, and the HSN Code for Wind Mill installed land.

Rate of GST for used Wind Turbine Generator (WTG) / Wind Mill:
The applicant sought an Advance Ruling on the rate of GST for a used Wind Turbine Generator (WTG) / Wind Mill. The Authority found that the supply of a used Wind Turbine Generator (WTG) / Wind Mill with accessories is a composite supply of Wind Mills and is liable to tax at the rate of 6% under CGST Act, 2017 and 6% under TNGST Act, 2017, as per entry 201A of Schedule I of Notification No. 1/2017 - Central Tax (Rate) dated 28.06.2017, as amended vide Notification No. 08/2021 Central Tax (Rate), dated 30.09.2021.

HSN Code for Wind Turbine Generator (WTG) / Wind Mill:
The applicant also inquired about the HSN Code for Wind Turbine Generator (WTG) / Wind Mill. The Authority determined that the HSN code for Wind Turbine Generator (WTG) / Wind Mill is 8412 80 30 --- Wind turbine or engine.

Rate of GST for Wind Turbine Generator (WTG) / Wind Mill installed land:
Regarding the rate of GST for Wind Turbine Generator (WTG) / Wind Mill installed land, the Authority clarified that the sale of land on which the wind mill is embedded is not liable to GST. This is because the sale of land is not considered a supply of goods or services under clause 5 of Schedule III of the CGST Act, 2017.

HSN Code for Wind Mill installed land:
The Authority did not specifically address the HSN Code for Wind Mill installed land, as the focus was on the tax implications of the sale of land where the wind mill is situated.

Separate Judgement:
No separate judgment was delivered by the judges in this case.