GST
TRT-2025-
AAAR Gujarat
Date:-13-01-23
In:-
Issue Favourable to Tax Payer ?:-
Facts –
- The Applicant, M/s Shilchar Technologies Limited, are manufactures of Electronics and Telecom and Power & Distribution Transformers.
- The appellant received an order from M/s Adai Green Energy Limited (AGEL), for supply of 5\6.25MVA ONAN/ONAF 33/0 8/0 8KV 'Aluminium Foil Type Winding Inverter Duty Transformers'(IDT) falling under Chapter Heading 8504 along with the mandatory spares for Transformers.
- They submitted that actual erection, commissioning and installation is not supposed to be carried out by them and they will be required only to supervise the same.
- AAR ruled that the appellant is liable for payment of GST on the total value of both the purchase order i.e. supply of goods and supply of service in terms of explanation inserted vide Entry No. 234 of Noti. No. 01/2017-CT (Rate) dated 28.06.2017 vide Notification No. 24/20 18-CT (Rate) dated 31.12.2018. Explanation stated that out of the gross value of the supply, 70% shall be deemed to be on account of goods and 30% deemed to be on account of service. Accordingly, the effective rate came to 8.9%).
- Aggrieved, this ruling is passed.
Issue –
- Whether the supply of Aluminium Foil Type Winding Inverter Duty Transformer and their parts are falls under Sr. no. 234 in Schedule-I to Notification No. 01/2017-Central Tax (Rate) dated 28,th June, 2017?
Order –
- The AAAR observed that the activities relating to supply of the transformers and the supervision of the erection, testing and commissioning of the transformers supplied by the appellant are inextricable and for the purpose of supply of transformer which would be used in initial setting up of the Solar Power Plant. The activities to be performed based on the two contracts discussed herein are interdependent and contribute to setting up of the Solar Power Generating System as per the Project Requirements.
- The description of goods covered under Entry No.234 along with the explanation provided therein now appears at Entry No.201A under Schedule-Il to the Notification No. 01/2017-CT(Rate) dated 28.06.2017, amended vide Notification No. 8/2021-CT (Rate) dated 30.09.2021 w.e.f. 1.10.2021, which provides for applicable rate of GST at 12%. The description of renewable energy devices & parts for their manufacture viz. 'solar power generating system' appearing at entry No. 234 now stands amended as 'Solar power generator, under Entry No. 201A.
- Hence it was held that appellant is liable for payment of GST on the total value of both the Purchase Order i.e. supply of goods and supply of services in terms of Explanation inserted vide Entry No.234 to Notification No. 01/2017- Central Tax (Rate) dated 28.06.2017 vide Notification No. 24/2018-Central Tax (Rate) dated 31.12.2018 and liable to be taxed, upto 30.09.2021.
- Thereafter the same will be covered under entry Sr.No. 201A appearing under Schedule-II to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 amended vide Notification No. 08/2021-Central Tax (Rate) dated 30.09.2021 and liable to be taxed w.e.f. 01.10.2021
GST return filing dates, GST compliance requirements, GST audit and assessments, GST e-invoicing implementation, GST annual return filing, GST late fee waiver, GST invoice format changes, GST council meeting updates, GST refunds and payments, GST input tax credit rules
Download Case Law
