QUESTION

ABC is supplying the Electric Vehicle Charger / Electric Vehicle Charging station to their Customer. It includes Supply of EV Charger, Installation and Commissioning as per agreed term with the Customers. It has quoted the price GST @ 5% Notification No. 12/2019 Dated 31/07/2019, entry no. 234 B HSN Code 8504 Charger or charging station for Electrically operated vehicles. For Charging Station for Electricaly operated Vehicles, it supply EV Charger, Transformer Cable with associated equipment for termination/ metering, appropriate civil work and bill the same consolidated as EV Charging Station @ GST 5%. Questions: 1. What rate of Tax and HSN will be charged for EV Charging Station? 2. Whether ABC should separate billing for installation, commissioning and maintenance, if yes what is the SAC Code and rate of Tax? 3. Whether ABC can bill the Transformer under above category if no what is the HSN Code and rate of Tax?

ANSWER

FACTS OF THE CASE:

ABC supplies Electric Vehicle Charger / Electric Vehicle Charging station, which includes Supply of EV Charger, Installation and Commissioning as per agreed term with the Customers. For Charging Station  for Electrically operated Vehicles, ABC supply EV Charger, Transformer Cable with associated equipment for termination/ metering, appropriate civil work and bill the same consolidated as EV Charging Station @ GST 5%.

LAW APPLICABLE:

Notification No. 01/2017 Integrated tax (rate) Schedule -I 5%

Schedule III-18%

Notification No. 08/2017 Integrated Tax (rate)

INTERPRETATION:

EV charger and charging station are covered under HSN code 8504 and taxable @ 5% vide S. No. 234B of Schedule I of Notification No. 01/2017 Central Tax (Rate).

In case of Charging station, there may be two possibilities:

1. If a single (consolidated) invoice is issued for the whole Charging Station, then that will be considered as Composite supply and covered under HSN 8504 taxable @ 5%.

2. If separate invoices are issued then each product will be taxable at the rates applicable on respective HSN and Installation and Commissioning will be covered under SAC 9987 taxable @ 18% vide s.no. 25 of Notification No. 08/2017 Integrated Tax (rate).

CONCLUSION:

1. EV charging station are covered under HSN code 8504 and taxable @ 5%.

2. Yes, separate invoice can be raised for installation, commissioning and maintenance and that will be covered under SAC 9987 taxable @ 18%.

3. If a single invoice is issued for Whole charging station then transformer will be covered under Charging Station taxable @ 5%, however if a separate bill for transformer is raised then it will be covered HSN 8504 taxable @ 18%.(Reply dt. 11/10/2021)