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GST Rate of Solar Power Plants
05-Feb-2023 (In GST Law)
Hi < we would like to understand the GST rate on Solar Power Plants for 100kW Solar Plant
Hello Sir, Solar power plant is covered under Chapter 84 and 85 of the tariff. It is stated at Sr. No. 234 of Notification No. 1/2017 Central Tax (Rate) will be taxable @ 5 percent. But after the amendment of the GST rate vide Notification No. 24/ 2018 - Central Tax (Rate) dated 31st December 2018, an explanation has been inserted in Sr. No. 234 and it has been clarified that if there is any service pertaining to construction, engineering, installation or other technical services provided in respect of solar power based devices, then the value of goods shall be deemed to be considered as 70 percent of Gross consideration and the remaining 30 percent of the gross consideration charged shall be deemed as value of the taxable services.
That means if the total transaction is at Rs 100, then Rs. 70 would be taxable at 5 percent i. e. Rs. 3.5 and remaining Rs. 30 would be charged at 18 percent i. e.
Rs. 5.4. Therefore, the total tax effect would be at 8.9 percent.
That means if the total transaction is at Rs 100, then Rs. 70 would be taxable at 5 percent i. e. Rs. 3.5 and remaining Rs. 30 would be charged at 18 percent i. e.
Rs. 5.4. Therefore, the total tax effect would be at 8.9 percent.
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Adv. Bharat Agarwal
Noida | 500+ Answers
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