2018 (9) TMI 1526 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (17) G. S. T. L. 677 (A. A. R. – GST) – Supply of goods – Rate of GST – Classification of goods – Composite/mixed supply – supply of solar inverter (8504), controller (8504), battery (8507) and panels (8541) under “Solar Power Generating System” (8543) as a whole & whether the such supply be called as ‘composite supply or mix supply’ – whether supply of solar inverter & solar panels together will fall under the definition of “Solar Power Generating System” or it will be a ‘mix supply’ and the applicability of GST rate on supply of solar inverter & solar panels together – applicability of advance ruling clarification – Whether manufacturer or trader will have any significance on the clarification?
–
Whether the supply of solar inverter, controller, battery and panels are covered under “Solar Power Generating System” as a whole and can be called as ‘composite supply or mix supply’ & what will be the rate of GST on
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r of the principal supply therefore all the goods should be taxable @ 5% as “Solar Power Generating System”.
–
Reliance placed in the CESTAT judgment Rajasthan Electronics & Instruments Ltd. Vs CCE [2004 (7) TMI 259 – CESTAT, NEW DELHI], where it was held that Solar Photovoltaic Module is a Solar Power Generating System. Other parts are only panel housing consisting of controllers and switches. Hence the whole system is a Solar Power Generating System and is entitled for the benefit of notification. Therefore, the denial of benefit of notification by the adjudicating authority is not sustainable.
–
The items which are used in connection with generation of power from sunlight are covered under the definition of “Solar Power Generating System”. Accordingly solar inverter & solar panel used for specified purpose i.e. generation of power from sunlight, will be covered under serial no. 234 of Schedule-I of the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017, the applica
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
he aforesaid findings are applicable for both manufactures and traders engaged in said supply. – AAR No. 07/2018-19 In Application No. 05/2018-19 Dated:- 28-8-2018 – SHRI VIPIN CHANDRA AND SHRI AMIT GUPTA MEMBER Present for the Applicant: Shri Mohit Chaudhary Accountant Present for the Jurisdictional Officer: None Note : Under Section. 100(1) of the Uttarakhand Goods and Services Tax Act, 2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under section-99 of the Uttarakhand Goods and Services Tax Act, 2017, within a period of 30 days from the date of service of this order. RULING 1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s. Eapro Global Ltd, Khasra No. 103 & 104, Salempur Rajputana Industrial Area, Roorkee seeking an advance ruling on following issues: (a) applicability of GST rate on supply of solar inverter
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ation of any goods or services or both (b) Applicability of a notification issued under the provisions of his Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid (e) Determination of the liability to pay tax on any goods or services or both (f) Whether the applicant is required to be registered (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term 4. In the present case applicant has sought advance ruling on applicability of GST rate on supply of goods and their classification thereof. Thus, in terms of said Section 97(2)(a) & (e) of CGST/SGST Act, 2017, the present application is hereby admitted. 5. The Joint Commissioner, SGST, Roorkee vide his letter dated 30.07.2018 submitted the report in this regard as under: (i) If said items are
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
have to first know about the Solar Power Generating System . We find that there are four main components to a solar power generating system as under: (i) Solar panels: The main part of a solar power generating system is the solar panel. Solar panels contain solar cells. Solar cells, sometimes called photovoltaic cells, convert the energy the sun into electricity. (ii) Inverters : The electricity produced in a solar panel is DC. Electricity we get from the grid supply is AC. So it is required to install an inverter to convert DC of solar system to AC of same level as grid supply. In off grid system the inverter is directly connected across the battery terminals so that DC coming from the batteries is first converted to AC then fed to the equipment. In grid tie system the solar panel is directly connected to inverter and this inverter then feeds the grid with same voltage and frequency power. (iii) Controller: This is not desirable to overcharge and under discharge a lead acid battery.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n this regard we reproduce the relevant portion of the Act as under: (i) Section 2(30) of the Act ibid composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; (ii) Section 2(74) of the Act ibid mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. (iii) Section 2(90) of the Act ibid principal supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary; (iv) Section 8 of the Act ibid: The tax liability on a composite or a mixe
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ugh exemption to said Solar Power Generating System was granted vide serial ho. 332 of Notification No. 12/12-CE dated 17.03.2012 but the same has also not been defined in the said regime. The relevant portion Notification No. 12/12-CE dated 17.03.2012 is reproduce as under: Sl. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate 1 2 3 4 332 Any Chapter Non-conventional energy devices or systems specified in List 8 Nil List-8: 1) Flat plate solar Collector (2) Black continuously plated solar selective coating sheets (in cut length or in coil) and fins and tubes (3) Concentrating and pipe type solar collector (4) Solar cooker (6) Solar air heating system (7) Solar low pressure steam system (8) Solar stills and desalination system (9) Solar pump based on solar thermal and solar photovoltaic conversion (10) Solar power generating system (11) Solar photovoltaic module and panel for water pumping and other applications (12) Solar cr
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
80) ELT 0481 (Tri. – Del.)] = 2004 (7) TMI 259 – CESTAT, NEW DELHI 3. The contention of the appellant is that the Dusk Dawn System is an electronic system for street lights comprising of electronic controller and Solar Photovoltaic Module. The street lights are automatically switched off based on the ambient light level which is sensed by the sensors installed therein. The Dusk Dawn System comprises of the SPV module and the penal housing. The contention is that whole system works on the solar energy and it is an energy saving device used for automatic switching off the street lights making proper use of grid power and increasing the life of the lamps by operating the street light from sunset to sunrise. The contention of the appellant is that the Commissioner of Central Excise in the adjudication order admitted the fact that Solar Photovoltaic module is a solar power generating system. In spite of this finding the benefit of notification was denied. The contention is that as the whole
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
hether the 'Solar Inverter Charger for solar lantern' is entitled for the benefit of exemption Notification 5/99-C.E., dated 28-2-99. The contention of the revenue is inverter charger should be classified under Heading No. 80.03 of the C.E. Tariff Act as a component of solar power generating system or solar lantern. The exemption Notification No 5/99 C.E., dated 28-2-99 as amended exempts "nor conventional energy systems" specified in list 4 of the Notification from payment of duty. Since the exemption notification exempts total system and not parts the system, the lower authority held that the inverter charger for solar lantern is not entitled for the benefit of the said notification. 3. We heard both sides. Learned Advocates contended that solar power generating system is also technically known as inverter charger card. Technical experts who headed the Technical Department of the appellants who are a major Public Sector Undertaking have certified that inverter charg
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
llants actually manufactured SPV lantern. The above lantern required electricity for its It is possible to convert solar energy to electricity with the help of inverter charger manufactured by the appellants. The Dy. General Manager has certified that the inverter merger constitutes solar power generating system as it performs the function of generating the required high frequency AC power from in-light with, the help of SPV module and supplying it to the compact fluorescent lamp of a solar lantern. In view of the above, expert opinion, we hold that e impugned item can be considered as solar power generating system and is entitled for the benefit of the exemption Notification. Therefore, we allow the appeal with consequential relief. (vii) On going through the afore stated cases pronounced by the hon ble Tribunal we find that the said judgments arc on the lines of Notifications 06/2002-CE & 5/99-CE. Therefore, we have to go through the said notifications to find out whether the sam
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ing wind mill, wind aero-generator and battery charger (15) Bio-gas plant and bio-gas engine (16) Agricultural, forestry, agro-industrial, industrial, municipal and urban waste conversion device producing energy (17) Equipment for utilising ocean waves energy (18) Solar lantern (19) Ocean thermal energy conversion system (20) Solar photovoltaic cell (21) Parts consumed within the factory of production of such parts for the manufacture of goods specified at S.Nos. 1 to 20 above. Notifications 5/99-CE dated 28.02.99 Sl. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate 1 2 3 4 265 Any Chapter Non-conventional energy devices or systems specified in List 4 Nil List-4: (1) Flat plate solar collectors (2) Black continuously plated solar selective coating sheets (in cut lengths or in coils) and fins and tubes (3) Concentrating and pipe type solar collectors (4) Solar cookers (5) Solar water heaters and systems (6) Solar air heating
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
5/99-CE (supra), we find that there is no change in the description of goods viz Non-conventional energy devices or systems specified in List in the said notifications and Solar power generating systems in the list appended to said notifications however their entry against serial no. & list nos. appended to said notifications keeps on changing during the relevant period except that there is no material change in the said notifications. Thus we observe that said notifications are similar in character & have the same soul to extend the benefit under Central Excise Law to solar power generating system and are identical to the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 in as much as the same benefit continued in GST regime also by way of concessional rate. Therefore case laws discussed above have a great impact on the case in hand and we observe that the same are applicable to the instant case. Accordingly we are in respectful agreement with the hon ble CESTAT jud
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Goods Unit GST Rates Central CGST State/UT/SGST/UTGST Inter-State IGST Compensation Cess (1) (2) (3) (4) (5) (6) (7) [84, 85 or 94] Following renewable energy devices & parts for their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, wind Operated Electricity Generator (WOEG) (e) Waste to energy plants / devices (f) Solar lantern / solar lamp (g) Ocean waves/tidal waves energy devices/plants (h) Photo voltaic cells, whether or not assembled in modules or made up into panels u 2.5% 2.5% 5% Nil (ix) As regard to the HSN code of Solar Power Generating System , we observed that Solar Power Generating System is a composite supply and the same has not been defined in GST law, therefore HSN code has to be followed in terms of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017. (B) Supply of solar inverter & solar panels together will fall under the definition of Solar Power Generating System or it will be a mix su
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =