The Tamil Nadu Authority for Advance Ruling has held that 12% GST Applicable on Solar Pump Controller for Solar Submersible Pump Application.
The applicant, Versa Drives Private Limited, have developed a Solar Pump Controller for Solar Submersible Pump Application. The applicant has sought before the authority that the correct HSN Code and the applicable Tax rate in respect of the Versa Vane Solar Pump Controller indigenously designed and manufactured by them.
The applicant submitted that the product is a controller which provides the maximum output based on the solar profile. The controller takes the power from Solar Panel and drives the motor of the submersible pumps. The applicant further submitted that these products are sold as ‘stand-alone’ products and will be bought by submersible pump manufacturers, solar panel manufacturers and dealers and System Integrators who will integrate Solar Panel, Solar pump controller and Submersible pumps. They are classifying the product under CTH 85044090.
The Authority observed that the applicant’s product is designed and manufactured exclusively for pumps. Their product is an electronic controller connected between the solar submersible pump which is submerged into the bore well and the solar panels. It takes power from the solar panel which is a DC power and drives the ACIM/PMSM pumps. The built in Maximum power point tracking (MPPT) algorithm optimizes the performance of the pump by utilizing the maximum power from the
Solar panel and also regulates the voltage and current coming from the solar panel. Thus, it is evident from the above facts that the applicant’s product merits classification under Chapter 85 in CTH 8504 and more specifically under CTH 8504 40 90- as Static converters. Further observed by the authority that the Drive is used for solar power Integration to connect the solar panels and the AC submersible pumps, thus these products are ‘solar Power based devices’.
The Coram of Sri T.G.Venkatesh, I.R.S. and Smt. K. Latha has ruled that “the applicant’s product “Versa Solar Pump Drive” being a convertor is classifiable under CTH 8504, more precisely CTH 8504 4090. The applicable rate of tax on the above said product, when supplied for integration with solar panels and AC submersible pumps is CGST at 6% and SGST at 6%”.
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