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GST rate on turbine generator for use in waste-to-energy project

Classification of Goods — Rate of Tax — In the instant case, applicant has sought advance ruling in respect of the following question—
Whether the turbine generator set to be supplied by the applicant to the buyer for use in waste-to-energy project is covered under Sl.No.234 of Schedule 1 of Notification 1/2017 - IGST (Rate) dated 28.06.2017 as “Renewable energy devices and parts for the manufacture of waste to plants/ devices”, attracting 5% levy?”
Held that— the issue before us to decide, for giving advance ruling on the issue sought by the applicant, is whether the product “Turbine” is waste to energy plant / device or not when supplied for use in waste to energy project.
A turbine is a rotary mechanical device that extracts energy from a fluid flow and converts it into useful work. A steam turbine is a device that extracts thermal energy from pressurized steam and uses it to do mechanical work on a rotating output shaft. Therefore a Turbine” is not a device that converts waste to. In fact in the instant case the waste is used to generate steam and the steam runs the turbine to generate electric power. Turbine itself does not work on waste but converts steam into energy. The conversion of waste into energy is done, only at the stage of combustion. The concessional rate of 5% of IGST is available to only such devices which convert waste into but not for the devices that converts energy from one form to the other form.
We are of the opinion that turbine is not a renewable energy device because the turbine at no stage acquires the nature of a device which converts waste to energy. The waste has already been converted into heat energy’ through the process of the burning/combustion which in turn is utilized to convert water into steam and the said steam runs the turbine to generate electric power. The turbine runs on steam irrespective of whether the steam is obtained by combustion of waste or any other means. Therefore the fact that in this particular case the steam was generated out of waste cannot lead to the conclusion that the turbine is a renewable energy device. The same turbine can run equally well on steam generated by use of coal etc., We are, therefore, of the view that turbine in question will not qualify to be covered under serial number 234 of Notification No. 1/2017-lntegrated Tax(Rate) dated 28.06.2017.
Ruling— The Turbine Generator Set to be supplied by the applicant for use in waste to energy project is not covered under Sl.No.234 of Schedule I of Notification No. 1/2017 dated 28.06.2017. — Triveni Turbines Limited, In Re [2018] 6 TAXLOK.COM 63 (AAR-Karnataka)