HOW TO CALCULATE GST ON SOLAR POWER SYSTEM

This query is : Resolved

Hozefa (Querist)
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27 September 2023 HOW TO CALCULATE GST ON SOLAR POWER SYSTEM IF 12%, 18% AND 28% GST RATED ITEMS INCLUDED ?

NORMALLY COUNTED GST ON RATIO OF 70:30, BUT THERE IS ONLY 12% & 18% GST RATED ITEMS.

BUT IN THIS CASE, 28% GST RATED ITEM ALSO INCLUDED.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2023 Solar structures are taxed at 18% GST. Solar panels: They are made of solar cells and are connected in series. They are made of semiconductor material that converts sunlight into electrical energy. Thus, they are considered solar power based devices and charged at 12% GST.

Solar power generated is exempt from GST for outside sale. In this case capitalise GST and claim depreciation.
For internal consumption of solar power input ITC can be claimed in case power used for taxable output.