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 (102) Advance Rulings (577)

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.

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Category : Goods and Services Tax (8425)
Type : Judiciary (12847)
Tags : AAR Rulings (551) goods and services tax (6863) GST (6464)

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