M/S EAPRO GLOBAL LIMITED

The Applicant sought Advance ruling on following issues:
(a) Whether the supply of solar inverter, controller, battery and panels arc 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 such supply?
(b) Whether the 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?
(c) Whether manufacturer or trader will have any significance on the clarification?

As per the hon’ble CESTAT judgments supply of solar inverter, controller, battery and panels would be covered under “Solar Power Generating System” as a whole when the said goods are supply for the said specified purpose and accordingly as per serial no. 234 of Scheduled of the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017, the applicable rate of GST on such supply will be; 5%  [2.5% CGST + 2.5% SGST].

Further as the supply of the said items are intended for “Solar Power Generating System”, hence the entire supply would fall under composite supply in as much as “Solar Power Generating System”, is predominant element in composite supply and it takes the character of the principal supply therefore all the goods should be taxable @ 5% as “Solar Power Generating System”.

It has been clarified by the hon’ble Tribunal that 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 panels 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 applicable rate on such supply will attract GST @ 5% under “Solar Power Generating System”

CRUX: (a) Supply of solar inverter, controller, battery and panels would covered under “Solar Power Generating System” as a whole in terms of serial no. 234 of Schedule-I of the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 when supplied for said purpose and the applicable rate of GST on such supply will be 5%  [2.5% CGST + 2.5% SGST] and such supply will be treated as composite supply”.

(b) Supply of solar inverter & solar panels together will fall under the definition of “Solar Power Generating System” (if the same are used for said specified purpose) in terms of serial no. 234 of Schedule-I of the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 and the applicable rate of GST on such supply will be 5%  [2.5% CGST + 2.5% SGST] and such supply will be treated as “composite supply”.

(c) The aforesaid findings are applicable for both manufacturers and traders engaged in said supply.