GST on Solar Power Generating plant and other Renewable Energy Plants

Posted By on December 22, 2018

To resolve the dispute inirespect of the GST Liability on Solar Power Generating Plant and other Renewable Energy Plants, the GST Council in it’s 31st meeting held on 22nd Dec, 2018 has decided as below:-

 

  • GST rate of  5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants attract applicable GST.

 

  • Certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant.

 

  • To resolve the dispute the Council has recommended that in all such cases, the 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.

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