M/S GIRIRAJ RENEWABLES PRIVATE LTD.
The Applicant is an EPC
contractor and enters into contracts with various developers who desire to set
up solar photovoltaic plants for supply of power. The Applicant is of the view
that they are supplying goods as well as services.
The applicant has sought Advance Ruling on following questions;
(i) Whether turn key EPC contract for erection of solar power plant wherein
goods and services are supplied is covered under Composite Supply under section
2(30) of CGST Act.
(ii) Whether the above said contract attracts 5% GST.
(iii) Whether the concessional rate of 5% GST would also be available to
sub-contractors.
The transaction being undertaken by the Applicant for supply of solar power
plant includes engineering, design, procurement, supply, development, testing
and commissioning is nothing but work contract given under Section 2(119) of the
CGST Act, 2017 which is a supply of service and not composite supply defined
under Section 2(30) of the said Act. The above said supply cannot be split into
supply of goods and supply of service.
The work contract supply of service is taxable @ 18%.
Crux – The erection and commissioning of solar power plant is a work contract
covered under Section 2(119) of CGST Act and attract GSR @ 18%