GST on commissioning of Solar Power Generating System – —-- The petitioner engaged as a contractor for supply, installation, testing and commissioning of Solar Power Generating System, challenged the Order-in-Appeal dated 20-10-2020. The respondent issued notice dated 17.09.2019, proposing demand of GST @ 18% on the ground that the activity rendered by the petitioner is under the Works Contract Service and has nothing to do with the supply of Goods. The counsel for the petitioner placed reliance upon “Explanation in Sl.No. 234 of Notification No. 01/2017-CT(Rate) dated 28-6-2017 and Sl. No.38 of Notification No.11/2017-CT(Rate)” and submitted that the turnkey project of solar power plant is not treated as immovable property. The court observed that a perusal of Circular No.163/19/2021-GST dated 06.10.2021 would show that GST Council has given clarity on specified Renewable Energy Projects that GST can be paid in terms of 70:30 ratio, for the goods and services, for the period 1st July, 2017 to 31st December, 2018, in the same manner prescribed for the period on or after 01.01.2019, as per the explanation in the Notification No.24/2018 dated 31st December, 2018. In view of the Circular No.163/19/2021-GST, dated 06.10.2021, the court deemed it appropriate to remand the matter back to the Appellate Authority.

Held that:- The Hon’ble High Court set aside the order and remanded the matter back to the appellate authority, for fresh consideration in accordance with law, within a period of six (6) weeks.