In re M/s Solarys Non-Conventional Energy Private Limited (GST AAR Karnataka)
a) 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%.
The contract of the applicant is covered under works contract under section 2(119) of the CGST Act and by item (ii) of entry no. 3 of the Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 upto 31.12.2018. From 01.01.2019, the same is taxable on the values worked out separately for goods and services under both entry no. 38 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 (as amended by Notification No.27/2018-Central Tax (rate) dated 31.12.2018) and Entry No.234 of Schedule I of Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 24/2018 Central Tax (Rate) dated 31.12.2018, and the values must be as per the explanation provided therein.
b) Whether parts supplied on standalone basis (when supplied with PV modules) would also be eligible to concessional rate of 5% as parts of solar power generation system.
The answer to the second question is that parts supplied on standalone basis (when supplied with PV modules) would be eligible to concessional rate of 5% as parts of solar power generation system.
