Supply of Solar Home Lighting System Attracts 12% GST: AAR
The Uttar Pradesh Authority for Advance Ruling (AAR( has ruled that supply of solar home lighting systems attracts 12% Goods and Service Tax (GST). The applicant R2VR Technologies Private Limited intent to supply solar home lighting systems. The applicant has sought an advance ruling in respect of applicability of GST rate of solar...
The Uttar Pradesh Authority for Advance Ruling (AAR( has ruled that supply of solar home lighting systems attracts 12% Goods and Service Tax (GST).
The applicant R2VR Technologies Private Limited intent to supply solar home lighting systems.
The applicant has sought an advance ruling in respect of applicability of GST rate of solar home lighting systems.
Before the authority, the applicant submitted that the solar home lighting systems consisted of Solar Volcanic Modules ,LED Lights, Solar DC Fan ,PVC Pipes and PVC settings etc .
Further the solar home lighting system is an integrated system with a visual subscriber display/tablet unit designed to provide green energy to a house for lighting and charging devices like cell phones.
Alakto Majumder Lon behalf of the applicant submitted that, they used to issued invoice using HSN code 9405 with 12% GST. The taxpayer up to 5 crore turnover are required to report 4 Digit HSN code in GSTR-1.bUT Their turnover crossed 5 crore in the financial year 2022-2023.Thus they have to issued 6/8 digit code. But they do not found any such code matching their product and attract 12% GST .
Further solar home lighting system is a fixed installation design for domestic application that illuminates the home by drawing power from the Solar Energy. It uses solar results to convert Solar energy directly received from sunlight to Electricity.
The electricity thus generated is stored in batteries and used for the purpose of lighting the home whenever required.
Moreover, such a solar PV module is installed in the open on roof terrace and exposed sunlight throughout the day the charge controller and battery are kept inside a protected place in the house.
After reviewing the submissions and provisions, the two member bench of Authority of Advance Ruling, Rajendra Kumar (central Taxes) and Harilal Prajapati (State Taxes) ruled that solar home lighting system to be classified under heading 94055040 and 12% GST applicable.
To Read the full text of the Order CLICK HERE
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