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solar system- gst

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GST rate schedule chapter 85 mentions in 5% category: solar power generating system( ref 1(c). whether this could mean all the items which are required for setting up sokar generating system like invertors, cables, transformers and other allied items, to be taxed at 5% also, OR these other items are to be taxed at their individual GST rates, which are more than 5%.
needless to mention, solar power cannot be generated or produced, without these other items. all of them are required to produce end product, solar power.
Tushar
Replies (4)

"........OR these other items are to be taxed at their individual GST rates?"

Correct, but the composite unit (system) is taxed at 5%.. Individual items not billed separately.

tushar be careful in your case, as if the individual invertor  etc are naturally bundled or not to supply solar power system. if natural then composit supply & charge 5%, if not then mixed supply charge higher rate of all the amongst system used if priced as one system. or u can bill specifying each item use , their price & rate separately & servvice cost separately.choice is urs

I am purchasing these material for solar power generating system. so, usage is for that only.
else, when I sell the solar generating system, I charge 5%, but if I have to pay GST separately when I purchased all these materials, I will have to either 18% or even 28% on some items.
that way, I will have inverted rate of GST, out put at 5% but inputs at more than that.
what is the meaning of solar opearating system? what will it cover?
I am producing cable lugs 85359090 but if I supply to solar customers what I should charge them 5% or 18%. Please clarify.


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