Get rate on solar power plant


(Querist)
24 March 2019
Dear Experts.
Pls let me know the GST rate on solar power plant also the HSN code thereof. However it is not only trading we have installed the soler plant also and have to consume the solar penal which is on 5% tax also battery which is 28% and other materials which is on 18% tax. Pls let me know the tax rate and hsn code on installed solar power plant.

Thanks
ASAP


CA R SEETHARAMAN (Expert)


Click to Talk 25 March 2019
GST not applicable on sale of power from solar plant. It's exempt from GST.

karan kumar (Querist)
25 March 2019
Sir I think GST 5% applicable

CA R SEETHARAMAN (Expert)


Click to Talk 25 March 2019
Power supply is exempt from GST. I am from power industry.

CA R SEETHARAMAN (Expert)


Click to Talk 25 March 2019
Power supply is exempt from GST. I am from power industry.

karan kumar (Querist)
26 March 2019
But sir :- this is not supply of power....as per Notification 1/2017 CGST act. 2017 in S. NO 234 IT is mention that solar power generating set is 5% taxable.... However in solar power plant 5% 18% 28% components have to procure also have to installed the same at site. Hence since it was contract of supply in 31th GST council has recommended that if goods are procured as per S. NO 234 alongwith other goods and services. Hence in this scenario 70% of gross value shall be deemed to be supply of goods and remaining 30% shall be deemed to be services. This has came in effect as per Notification 24/2018 CGST act. 2017

pls clarify....is it correct

CA R SEETHARAMAN (Expert)


Click to Talk 27 March 2019
Yes it's correct.
70 percent of the gross value will be deemed as the value of supply of said goods attracting 5 percent rate and the remaining portion, 30 percent, of the aggregate value of such EPC contract will be deemed as the value of supply of taxable service attracting standard GST rate(18%}.

karan kumar (Querist)
27 March 2019
Sir this bifurcation is for GST levy. But our actual Labour cost in solar project is approximately 10% hence in income tax whether 10% cost will be treatment as service charge or entire value shall be considered as supply of goods and the cost of installations etc. Will comes in expenses form as to supply the goods in balance sheet

CA R SEETHARAMAN (Expert)


Click to Talk 27 March 2019
Entire value shall be considered as supply of solar plant.

karan kumar (Querist)
27 March 2019
That mean No Need to show any value as service charge in balance sheet total value shall be considered as supply of solar plant and the expenses of Labour incurred on its installation etc. Will be debited in profit & loss account.

Right. .

CA R SEETHARAMAN (Expert)


Click to Talk 28 March 2019
No, expenses of labour to be capitalised as supply of solar plant not to be charged to profit and loss account.


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