The Applicant is an EPC contractor and enters into contracts with various developers who desire to set up solar photovoltaic plants for supply of power. The Applicant is of the view that they are supplying goods as well as services.

The applicant has sought Advance Ruling on following questions;
(i) Whether turn key EPC contract for erection of solar power plant wherein goods and services are supplied is covered under Composite Supply under section 2(30) of  CGST Act.
(ii) Whether the above said contract attracts 5% GST.
(iii) Whether the concessional rate of 5% GST would also be available to sub-contractors.

The transaction being undertaken by the Applicant for supply of solar power plant includes engineering, design, procurement, supply, development, testing and commissioning is nothing but work contract given under Section 2(119) of the CGST Act, 2017 which is a supply of service and not composite supply defined under Section 2(30) of the said Act. The above said supply cannot be split into supply of goods and supply of service.

The work contract supply of service is taxable @ 18%.

Crux The erection and commissioning of solar power plant is a work contract covered under Section 2(119) of CGST Act and attract GSR @ 18%