In re Shilchar Technologies Limited (GST AAR Gujarat)
Q. Whether supply of Aluminium Foil Type Winding Inverter Duty Transformer classifiable under Chapter Heading 8504 and parts of Transformer supplied / to be supplied for initial setting up of solar project falls under Sr. No. 234 in Schedule-I to Notification No.01/2017-Central Tax (Rate) dated 28th June, 2017 and liable to Central GST at the rate of 2.5% along with State GST at the rate of 2.5%?
Ans. The applicant is liable for payment of GST on the total value of both the Purchase Order i.e. supply of goods and supply of service in terms of Explanation inserted vide Entry No. 234 of Not. No. 01/2017-CT (Rate) dated 28.06.2017 vide Notification No. 24/2018-CT (Rate) dated 31.12.2018. Explanation stated that out of the gross value of the supply, 70% shall be deemed to be on account of goods and 30% deemed to be on account of service. Accordingly, the effective rate came to 8.9% as under:
| S. No. | Particulars | % of value | Rate of tax |
Effective Rate of tax |
|---|---|---|---|---|
| 1. | Goods | 70 | 5% | 3.5 % |
| 2. | Services | 30 | 18% | 5.4% |
| Total | 8.9% | |||
Also Read AAAR : GST on supply of Aluminium Foil Type Winding Inverter Duty Transformer & its Parts
