The Haryana Authority for Advance Ruling (AAR), ruled that the combination of solar inverter and battery is not Solar Power Generating System but qualifies as mixed supply and hence it attracts 18% GST.
M/ s Solar Co, the applicant proposes to be engaged in manufacturing or solar inverter and lead acid battery. Apart from that the applicant will procure solar panel and controller from the open market and there after sell the same as a composite unit to the consumer and to the dealer.
In the instant case, the applicant proposes to manufacture Inverter and battery which is used in solar power generating system. It is stated by the applicant that inverter which is itself a renewable entry device and capable of generating and storing solar power.
A solar inverter or PV inverter is a type of electrical converter which converts the variable direct current (DC) output of a photovoltaic (PV) solar panel into a utility frequency alternating current (AC) that can be fed into a commercial electrical grid or used by a local, off-grid electrical network.
The solar inverters are itself capable of generating solar power and is a solar power generating system in itself. The entry no 234 of the schedule I of the Notification No. 01 / 2017 -Central ‘Tax (Rate), dated 28-06- covers the solar power generating system in its ambit. Accordingly the Solar inverters fall within the ambit of entry no 234 of the schedule I of the Notification No: 01 /2017 Central Tax(Rate).
The Two-member Bench comprising Sunder Lal, Member CGST and Kumud Singh, Member SGST, observed that “As the combination of solar inverter 8, battery do not make “Solar Power Generating System”, thus the said supply will be treated as mixed supply and rate or GST will be 18%. The rate of GST does not alter whether the supply has been made by the manufacturer or trader.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
