18% GST applies on Setting up & operation of solar power plant: AAR

In re Fermi Solar Farms Private Ltd. (AAR Maharashtra) Q.1 Whether in case of separate contracts for supply of goods and services for a solar power plant, there would be separate taxability of goods as ‘solar power generating system’ at 5% and services at 18%? A.1 The agreements tendered in support of this question reveal that the impugned transaction of setting up and operation of a solar photovoltaic plant is in the nature of a “works contract” in  terms of clause (119) of section 2 of the GST Act. Schedule II [Activities to be treated as supply of goods or supply of...