9911796707
TMI Blog2022 (4) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... istered under GST with GSTIN 33AADCV2259E1ZK. The applicant has sought Advance Ruling on the following questions: 1. Tax rate for HSN code 85 04 40 90 2. HSN code for solar pump controller The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they have developed a Solar Pump Controller for Solar Submersible Pump Application and have classified the controller under HSN code 85044090 and assesses @18% GST. They have stated that when they submitted the quote to the customer, the customer is of the view that it should be charged at 5%. The applicant is seeking clarification on what is the rate for HSN 85 04 40 90 to enable them to start billing the products. 2.2 The applicant has stated that the solar powered devices tax rate is 5%, but there is no clarity on what kind of a solar powered devices are at 5% tax and in some places that raises concern to the buyer. There is no clarity in GST rate index where 8 digit HSN codes are not there for most of the products. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s / Dealers across India. Some of the components were not dealt by them those are ONLY imported only component level. Bare PCBs were manufactured in India. These components were assembled, tested and manufactured as product in house. Multiple PCBs were connected through connectors and wires which are bought in India. Heatsink is manufactured for their need in India (They have made a customized tool for the same). The plastic enclosure was done through injection moulding in Coimbatore itself. The product was designed (Hardware and firmware) inhouse by their R&D engineers and the firmware was written by their R&D engineers. They have stated that their product is an indigenous product designed and manufactured by them. As this is an electronic product, India doesn't have the facility to manufacture those tiny powerful Integrated circuits which needs to be imported as components / bought through the authorised distributors I dealers / traders in India. They had enclosed Leaflet, user manual and photographs which are as follows: The applicant has also submitted the user guide of Versa Solar Pump Drive, which includes the product overview, installation & wiring, Startup & operation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... function based on solar energy. * Irrespective of the 8 digit classification under chapter 84 or 85, solar power based devices falling under chapter 84 or 85 is mentioned in Sl.No.234 of the fist of goods @5% GST under schedule I of Rate of GST on goods booklet given in www.cbic gst gov.in. * hence, the tax rate for 'Solar Pump controller for solar submersible pump application 'falling under chapter 84 or 85 is 5% 5. The State Jurisdictional Authority has stated that there are no pending proceedings in the applicant's case. 6.1 We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, oral submissions made at the time of Virtual hearing, submissions made after hearing and the comments of the Jurisdictional Authority. The applicant has stated to have developed the solar pump controller which has applications in Agricultural pump sets, Domestic use, Solar Pools and Solar-powered fountains. They have sought ruling on following questions: 1. Tax rate for HSN code 85 04 40 90 2. HSN code for solar pump controller The questions raised is on the Classification of the goods and the applicable rate of tax o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input voltage; XX-Maximum input current; SP-Solar Pump application YY-Pump rating in HP; BMU-B-Bluetooth, M-Memory, U-UPSC. It is further self-declared by the applicant that the input of the product being DC, the product cannot work with grid supply from Electricity Board and if a battery is connected, the product will not work as the battery should deliver large amount of current. 7.2 It is seen from the above various submissions that the product is a controller which provides the maximum output based on the solar profile. The controller takes the power from Solar Panel and drives the motor of the submersible pumps. The applicant has stated that these products are sold as 'stand-alone' products and will be bought by submersible pump manufacturers, solar panel manufacturers& dealers and System Integrators who will integrate Solar Panel, Solar pump controller and Submersible pumps. They are classifying the product under CTH 85044090. 7.3 Prima facie, the classification of the product is taken up. Under GST, as per the Explanation to Notification No. 01/2017-C.T. (Rate) dated 28.06.2017, the Customs Tariff which is based on HSN is made applicable. Therefore, the relevant e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different types. They may also incorporate various auxiliary devices (e.g., transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternately as conductors and non-conductors. The fact that these apparatus often incorporate auxiliary circuits to regulate the voltage of the, emerging current does not affect their classification in this group, nor does the fact that they are sometimes referred to as voltage of current regulators. 7.4 Thus, as per Chapter Note 2 to Chapter 85, Heading 8501 to 8504 do not apply to goods described in Headings 8511, 8512, 8540, 8541 or 8542. On perusal of the Headings 8511, 8512, 8540, 8541 and 8542, it is clear that the product in hand do not fall under these Headings and the product being a Convertor, is likely covered under CTH 8504 above, more specifically under CTH 8504 40 90. It is further seen from the Explanatory notes, that the apparatus of this group are those used to convert electrical energy in order to adopt it for further use. 7.5 Applying the above to the product at hand, it is seen form the product overview that the applicant's product is de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and on construction of such Pump, under Para 3.6 it is stated as follows: 3.6 SPV Controller 3.6.1 Maximum Power Point Tracker (MPPT) shall be included to optimally use the power available from the SPV array and maximize the water discharge. 3.6.2 The SPV Controller must have IP (65) protection or shall be housed in a cabinet having at least IP (65) protection. 3.6.3 Adequate protections shall be provided in the SPV Controller to protect the solar powered pump set against the following: a) Dry running; b) Open circuit; c) Accidental output short circuit; d) Under voltage; e) Reverse polarity; f) SPD to arrest high current surge; and g) Lightening arrestor. 3.6.4 A good reliable DC Circuit Breaker as per IS/IEC 60947-2 suitable for switching DC power ON and OFF shall be provided in the SPV Controller. 3.6.5 All cables used shall be as per IS 694. Suitable size of cable shall be used in sufficient length for inter-connection between the SPV array to SPV Controller and the SPV Controller to solar powered pump set. Selection of the cable shall be as per IS 14536. 3.6.6 Controller shall be integrated with GSM/GPRS Gateway with Geo tagging. GSM/ GPRS Cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Operated Electricity Generator (WOEG): (e) Waste to energy plants / devices: (f) Solar lantern / solar lamp; (g) Ocean waves/tidal waves energy devices/plants; (h) Photo voltaic cells, whether or not assembled in modules or made up into panels. Explanation:- If the goods specified in this entry are supplied, by a supplier, along with supplies of other goods and services, one of which being a taxable service specified in the entry at S. No. 38 of the Table mentioned in the notification No. 11/2017-Central Tax (Rate), dated 28th June, 2017 [G.S.R. 690(E)], the value of supply of goods for the purposes of this entry shall be deemed as seventy per cent. of the gross consideration charged for all such supplies, and the remaining thirty per cent. of the gross consideration charged shall be deemed as value of the said taxable service. 9. In view of the foregoing, we rule as under: RULING 1. The applicant's product "Versa Solar Pump Drive" being a convertor is classifiable under CTH 8504, more precisely CTH 8504 4090. 2. The applicable rate of tax on the above said product, when supplied for integration with solar panels and AC submersible pumps, as discussed at para 8 above, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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