What is the GST rate applicable to parts required for the manufacture of a Solar Power Generating System?

GUJARAT AUTHORITY FOR ADVANCE RULING,
GOODS AND SERVICES TAX,
D/5, RAJYA KAR BHAVAN, ASHRAM ROAD,
AHMEDABAD – 380 009.

ADVANCE RULING NO. GUJ/GAAR/R/03/2021
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2020/AR/38)
 Date: 20.01.2021

Name and address of the
applicant
: M/s. Apar Industries Limited
Survey No.189/P1,GIDC Road, Tal.
Umbergaon, Valsad, Gujarat-396171.

GSTIN of the applicant 24AAACG1840M1ZR

Date of application : 29.08.2020
Clause(s) of Section 97(2) of
CGST / GGST Act, 2017, under
which the question(s) raised.
: (e) determination of the liability to pay
tax on any goods or services or both;
(g) whether any particular thing done
by the applicant with respect to any
goods or services or both amounts to
or results in a supply of goods or
services or both,within the meaning of
that term.

Date of Personal Hearing : 23.12.2020

Present for the applicant : Shri Amal Dave

B R I E F FA C T S

The applicant M/s. Apar Industries ltd. located at Plot No.189/P1, GIDC Road, Tal.Umbergaon, Valsad (Dist.), Gujarat-396171 AND Survey No.82/2P,88,861/1, 862/1, 863/1, Khata No.1932, Manekpur Road, Khatalwada, Valsad-396120. (having correspondence address at 12/13, Jyoti Wire House, 23A, Shah Industrial Estate, Off.Veera Desai Road, Andheri(West), Mumbai) are manufacturers and suppliers of various goods such as Power/Electric cables, House wire cables, Marine/pressure tight cables and non-pressure tight cables, Solar DC cables, XLPE(HT/LT) cables etc. falling under Chapter Heading No.8544 of the Customs Tariff Act.

2. The applicant vide their submissions dated 06.08.2020 and 22.12.2020 have submitted that they have received Purchase Order from Solar PowerGenerating Projects such as Adani Green Energy Limited, Adani’s Mundra Solar PV Limited, etc. and expected future similar orders, for supply of “SolarHT XLPE & LT XLPE Cables”, for use as Parts in the manufacture of Solar Power Generating System; that though these cables are universally classifiedunder Tariff Heading No.8544, they are used as integral parts in Solar PowerGenerating System without which Solar Power Generating System cannot function and cannot be treated as complete in all respect and at the same time the same is capable of being separated for repairs and replacement; that,therefore, all the Solar Power Project authorities are claiming that these cables will attract GST @5% in terms of Sr.No.234 of Schedule-I of the NotificationNo.01/2017-Integrated Tax(Rate) dated 28.06.2017; that amendment to original Purchase Order bearing No.4500293305 dated 25.12.2018 (amended  as on 16.02.2019) related to the above Project Authorities, confirming the applicability of concessional rate of GST @5% is submitted; that while placing the above orders, the indenting project authority is claiming that applicableGST will be @5% on these cables, since the same is forming an integral part inthe manufacture of Solar Power Generating System and hence Sr.No.234 of Schedule-I to the above notification will get attracted in their supply of thesecables; that they are internationally certified, approved and recognized manufacturer and supplier of said HT XLPE & LT XLPE Cables i.e. PhotoVoltaic (PV) Cables and being an applicant in the present application for Advance Ruling seeks immediate ruling/order about ‘Determination of Liability to pay Tax on the above goods’ to be supplied by them from Gujarat State to Solar Power Generating Projects, for use as essential parts in theirmanufacture. The applicant has requested to take up this matter on priority and out of turn as it involves the national interest and economic development of our country and the requirement of the goods by the project authority is also on priority to complete the project in time.

To know more in details find the attachment file