Case Law Details
In re Solai Redirect India LLP (GST AAR Rajasthan)
Whether EPC contract for set up of solar power generating system be considered as a composite supply with PV modules being the principal supply and be taxed at a rate of 5% (i.e. tax rate applicable on the P.V. modules)?
As per the statement of facts submitted by the applicant, the scope of work in respect of “Turnkey Composite EPC Contract” includes designing, planning civil works, procurement of good, erection, testing and commissioning. Accordingly, “Turnkey EPC Contract” is not covered under Entry 234 of Schedule 1 of the Notification no. 1/2017 – Integrated Tax (Rate), Entry 234 of Schedule 1 of the Notification no. 1/2017 – Central Tax (Rate) both dated 28 June, 2017 and Entry 234 of Schedule I of the Notification no 1/2017 – State Tax (Rate) dated 29 June, 2017. The contract for Erection, Procurement and Commissioning of Solar Power Plant falls under the ambit “ Works Contract Services” ( SAC 9954 ) of Notification 11/2017 Central Tax (Rate) dated 28 June, 2017 and attracts 18% rate of tax under IGST Act, or 9% each under the CGST and SGST Acts.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,
Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Riding constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
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