In re R2V2 Technologies Private Limited (GST AAR Uttar Pradesh)
Solar home lighting systems attracts GST @ 12%
The AAR, Uttar Pradesh, in the matter of M/s. R2V2 Technologies Private Limited [Advance Ruling No. UP ADRG 27/23 dated May 08, 2023] ruled that solar home lighting systems are appropriately classifiable under tariff entry 9405 5040 and accordingly will attract GST @ 12%.
Facts:
M/s. R2V2 Technologies Private Limited (“the Applicant”) is engaged in the business of providng solar home lighting systems solutions. The Solar home lighting system is a fixed installation designed for domestic application that illuminates the home by drawing power from the solar energy. The system uses solar cells to convert solar energy directly received from sunlight to electricity. The electricity generated is stored in batteries is used for lighting home whenever required.
The Applicant has crossed the turnover of 5 Crores in F.Y. 2022-23 and therefore, the Applicant is required to issue invoices with 8 digit HSN Code. However, there is no HSN code matching Applicant’s product.
The Applicant filed an application for advance ruling seeking clarification regarding HSN Code and rate of GST applicable on solar home lighting system.
The Applicant submitted that the supply of Solar home lighting systems is covered under the ‘Solar power based devices’ vide Sl. No. 201A of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017 (“the Goods rate notification”).
Issue:
What is the appropriate classification of Solar home lighting systems under GST?
Held:
The AAR, Uttar Pradesh, in the Advance Ruling No. UP ADRG 27/23 held as under:
