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GST calculations for my 1 mw solar power plant

Rate / HSN codes 84 views 3 replies

Jayashree

Software Engineer

87 Points Posted on 28 May 2026

I have contracted on vendor abc enterprises for laying out 11 kv transmission line and and a bay structure for my 1 mw solar power plant. Total cost is 35L (material and labour). I paid him 39L. Actually 58L but 10L I got returned by him. When he charge me a GST, should he charge me 18% or 8.9% (using 70 30 rule) under HSN 8541 and HSN 9954

Replies (3)

Quick Summary

A discussion on GST applicability for 11 kV transmission line and bay structure work for a 1 MW solar plant. The query examined whether GST should be charged at 18% or under the 70:30 concessional valuation method for solar projects, considering mixed material and labor billing adjustments.

Jayashree

Software Engineer

87 Points Posted on 28 May 2026

Sorry i pad him 49L and he return me back 110L

Jayashree

Software Engineer

87 Points Posted on 28 May 2026

I mean i pad him 49L and he returned me 10L back

L.S Tripathi

Chairman & Founder

2 Points Posted on 28 May 2026

As per the nature of solar power projects, GST applicability mainly depends on the contract structure, scope of work, and invoice breakup. In many EPC contracts, the 70:30 mechanism has been considered, but in some cases transmission line and structural work may also fall under works contract services taxable at 18%.

You should properly review the agreement and billing pattern before finalising the GST treatment.

If you still have any confusion regarding the applicability or calculation, you may directly discuss the complete matter with me through the official Beginquest website. After reviewing the agreement and invoices properly, a more accurate opinion can be provided.