What is the GST rate on Solar EPC Contract Under PM Suryaghar Yojana?
Is it 70% on Goods @ 5% and 30% on Service @ 18%
or
We can charge 5% on entire project being composite supply.
A lot of confusion, any professional clarification is warmly welcome.
The GST on a Solar EPC contract is not a single flat rate. It follows a 70:30 split: 70% of the value is taxed at 12% (Goods), and 30% of the value is taxed at 18% (Services), resulting in an effective tax rate of 13.8% on the total contract value.
Thankyou for Reply, but i think from GST reform effective from 22nd September 25, the 70% portion is taxable at 5%. And What about accounting for closing stock. because we purchase multiple products like Panels, Inverters and so on, but make invoice as Solar Power Generating System i mean bundled invoice to comply with the 70 30 split. So whether to make a stock hournal entry at each project or at month end.
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