Case Law Details

Case Name : In re Fermi Solar Farms Private Ltd. (Authority For Advance Ruling)
Appeal Number : No.GST- ARA-03/2017/B-07
Date of Judgement/Order : 03/03/2018
Related Assessment Year :
Courts : AAR Maharashtra (31) Advance Rulings (336)

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 services] treats “works contracts” u/s 2(119) as supply of ‘services’. Depending upon the nature of supply, intra-State or inter-State, the rate of tax would be governed by the entry no.3(ii) of the Notification No. 8/2017-Integrated Tax (Rate) under the Integrated Goods and Services Tax Act, 2017 (IGST Act) or the Notification no. 11/2017 –Central Tax/State Tax (Rate) under the CGST Act and MGST Acts. The rate of tax would he 18% under the IGST Act and 9% each under the CGST Act and the MGST Act, aggregating to 18% of CGST and MGST.

Q.2 Whether parts supplied on standalone basis (when supplied without PV modules) would also be eligible to concessional rate of 5% as parts of solar power generation system?

A.2 In the absence of any documents before us, we would not be able to deal with this question in
the present proceedings.

Download Judgment/Order

More Under Goods and Services Tax

Posted Under

Category : Goods and Services Tax (7118)
Type : Judiciary (11794)
Tags : AAR Rulings (307) goods and services tax (5609) GST (5212)

Leave a Reply

Your email address will not be published. Required fields are marked *