Home GST 12% Tax Fee Applies on Photo voltaic House Lighting Methods

12% Tax Fee Applies on Photo voltaic House Lighting Methods

12% Tax Fee Applies on Photo voltaic House Lighting Methods
UP GST AAR's Order for R2V2 Technologies Private Limited

The Authority of Advance Ruling (AAR), the Uttar Pradesh bench has dominated that photo voltaic dwelling lighting programs are topic to 12% GST.

The Rajendra Kumar and Harilal Prajapati bench has famous that ‘photo voltaic dwelling lighting programs are included below the class of solar-based units coated below HSN Code 94055040.

The applicant proposed to produce a photo voltaic dwelling lighting system made up of Photo voltaic photovoltaic Modules, a lithium ferro phosphate battery, a photo voltaic cost controller, LED Lights, a photo voltaic DC Fan, a module organized construction, a subscriber-end visible show or pill, an AC-DC adapter, and Conduit objects like cable, PVC Pipes, and PVC Fittings.

Learn Additionally: AAR: GST ITC Not Eligible on Items & Providers Utilizing for Photo voltaic Panel Set up

A photo voltaic dwelling lighting system is a photo voltaic energy-powered fastened setup constructed for home makes use of. Photo voltaic cells are used to remodel photo voltaic power straight from daylight into electrical energy. The remodeled electrical energy is saved in batteries after which used to mild the house every time required.

The applicant anticipated an early resolution on the matter of whether or not the availability of products in query can be included below solar-based units.

The AAR noticed that some modifications within the GST fee for a number of merchandise had been specified by the Central Board of Oblique Taxes and Customs (CBIC) which got here into impact on October 1, 2021. On this change, a GST of 12% was charged in opposition to 5% earlier on photo voltaic panels and modules, photo voltaic power-based units, solar energy turbines, windmills, photo voltaic lamps, tidal wave power units or vegetation, and their elements.

The AAR acknowledged that the worth of the availability of products shall be thought-about to be 70% of the gross consideration charged for all such provides if the products are equipped together with provides of service by means of set up or different technical companies regarding the establishing of Solar energy-based units. The worth of the taxable service shall be thought-about the remaining 30% of the gross consideration charged. 30% of the gross consideration can be topic to 18% GST on companies, whereas 70% could be topic to 12% GST on merchandise.

The AAR held that the product doesn’t embody set up or upkeep service with it. The customer can search assist from any native vendor to put in and maintain upkeep of the product. Subsequently, the applicant doesn’t present any service with the product in query. The applicant simply needs to promote the product that’s ‘Photo voltaic House Lighting System’. 12% GST imposed on the product.


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