The Haryana Authority for Advance Ruling (AAR), ruled that the combination of solar panel, inverter, solar battery and charger controller are Solar Power Generating System and attracts 12% GST.
In the instant case, the applicant, M/s MN Solar Co. 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.
The applicant submitted that in the case of COMMISSIONER OF COCHIN v. SOLGEN ENERGY PVT LTD it has been held that Solar inverter if exposed to sunlight, performing function of generating electricity covered within description ‘Solar power Generating System.
The applicant submitted that battery is charged by solar electricity and this battery then feeds a load directly or through an inverter. In this way the variation of power quality due to variation of sunlight intensity can be avoided in solar power system instead an uninterrupted uniform power supply is maintained. Thus, Solar battery is an integral part of solar power generating systems.
The Two-member Bench relied on the judgment of the Maharashtra AAR, in case number GST-ARA-03/2017/B-07, it has been upheld that “Supply of Solar Invertor, controller, battery and panels would be covered under “Solar Power Generating Systems” as whole in terms Of Sr. NO. 234 Of Schedule-I of the Notification No. 01/201 7-CentraI Tax (Rate) dated 28.062017 when supplied for said purpose and applicable rate of GST on such supply will be 5%; and such supply will be treated as composite supply.
On perusal of above advance ruling, it is clear that the solar panel, and solar inverter if supplied together shall qualify ‘solar power generating system’ and considered as composite supply, Accordingly, the same shall fall within the ambit of serial No. 234 of Schedule-I of the Notification No, 01/2017 Central Tax (Rate), dated and the applicable rate of GST on such supply will be 12%.
The Bench comprising Sunder Lal, CGST Member and Kumud Singh, SGST Member observed that “In view of above submissions we are of the view that the solar panel, battery and solar inverter supplied together shall be considered as composite supply and shall qualify as ‘solar power generating system’ which fall within the ambit of serial No. 234 of Schedule-I of the Notification No. 01/2017-central Tax (Rate), dated 28-6-2017 and chargeable to GST at the rate of 12%.”
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