Section 101 of the Central Goods and Services Tax Act, 2017—Supply of goods—The Appellant sought clarification in respect of the following:
a. Whether in case of separate contracts for supply of goods and services for a solar power plant, there would be separate taxability of goods as ‘solar power generating system’ at 5% and services at 18%.
b. Whether parts supplied on standalone basis (when supplied without PV modules) would also be eligible to concessional rate of 5% as parts of solar power generation system.
c. Whether benefit of concessional rate of 5% of solar power generation system and parts thereof would also be available to sub-contractors.
Held that :- In view of the above discussions and findings and in terms of Section 101(1) of the CGST Act 2017 and MGST Act 2017, we hold that-
67. WHETHER IN CASE OF SEPARATE CONTRACTS FOR SUPPLY OF GOODS AND SERVICES FOR A SOLAR POWER PLANT, THERE WOULD BE SEPARATE TAXABILITY OF GOODS AS ‘SOLAR POWER GENERATING SYSTEM’ AT 5% AND SERVICES AT 18%?
The agreements tendered in support of this question are for setting up and operation of a solar photovoltaic plant and are in the nature of a ‘works contract’ in terms of clause (119) of section (2) of the GST Act. Schedule II ( Activities to be treated as supply of goods or supply of services) treats ‘works contract’ u/s 2 (119) as supply of services .Depending upon the nature of supply, intra-state or inter-state the rate of tax would be governed by the entry no 3(ii) of the Notification No 8/2017-Integrated Tax (rate) under the Integrated Goods and Services Tax Act, 2017 (IGST Act) or the Notification no 11/2017 Central Tax/State Tax (Rate)under the CGST Act and MGST Acts. The rate of tax would be 18% under the IGST Act and 9% each under the CGST Act and the MGST Act, aggregating to 18% of CGST and MGST Act.
68. WHERE OTHER PARTS AND COMPONENTS ARE SUPPLIED BY THE CONTRACTOR (NOT PV MODULES), WHETHER THEY WOULD ALSO BE ELIGIBLE TO CONCESSIONAL RATE OF 5% AS PARTS OF SOLAR POWER GENERATION SYSTEM?
The Appellant has not produced any document or agreement before us incorporating such a situation. In the absence of any written agreement showing the terms and conditions, it would be both difficult as well as incorrect for us to determine the same. The situation now is the same as it was before the Advance ruling authority. There being no change in situation, there is nothing we can add. Also, as an appellate authority’ we can decide issues already decided and appealed against. There being no decision given by the advance ruling authority, we cannot give any decision in appeal.
69. WHETHER BENEFIT OF CONCESSIONAL RATE OF 5% OF SOLAR POWER GENERATION SYSTEM AND PARTS THEREOF WOULD ALSO BE AVAILABLE TO SUB CONTRACTORS?
The Appellant has not produced any document or agreement before us incorporating such a situation. In the absence of any written agreement showing the terms and conditions, it would be both difficult as well as incorrect for us to determine the same. The situation now is the same as it was before the Advance ruling authority. There being no change in situation, there is nothing we can add. Also, as an ‘appellate authority’ we can decide issues already decided and appealed against. There being no decision given by the advance ruling authority, we cannot give any decision in appeal. [2018] 4 TAXLOK.COM 92 (AAAR-Maharashtra)