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of <h1>Solar Home Lighting Systems classified under HSN 94055040 attracting 12% GST rate under General Rules interpretation</h1> <h3>In Re: M/s R2V2 Technologies Private Limited</h3> AAR UP ruled that Solar Home Lighting Systems should be classified under HSN heading 94055040 and attract 12% GST. The authority applied General Rules for ... Classification of supply of goods - rate of GST - HSN Code - Solar power based devices - applicability of Entry No. 201A of Schedule II of Notification No. 1/2017-CENTRAL TAX (RATE), DATED 28-6-2017, as amended vide Notification No. 8/2021-CENTRAL TAX (RATE) [G.S.R. 693(E)/F. NO. 190354/206/2021 -TRU] DATED 30-9-2021 [Attached]. HELD THAT:- As per Rule 3 (a) of General Rules for the interpretation of import tariff, “The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.” Thus, the Solar Home Lighting System to be classified under heading 94055040 and is taxable GST @ 12%. Issues Involved:1. Classification of Solar Home Lighting System under 'Solar power based devices'.2. Applicable GST rate and HSN code for the Solar Home Lighting System.Summary:Issue 1: Classification of Solar Home Lighting System under 'Solar power based devices'The applicant, M/s R2V2 TECHNOLOGIES PRIVATE LIMITED, sought clarification on whether their Solar Home Lighting System falls under 'Solar power based devices' as mentioned in Entry No. 201A of Schedule II of Notification No. 1/2017-CENTRAL TAX (RATE), dated 28-6-2017, as amended by Notification No. 8/2021-CENTRAL TAX (RATE) dated 30-9-2021.The applicant described the Solar Home Lighting System as an integrated system comprising Solar Photo-Voltaic Modules, Lithium Ferro Phosphate battery, Solar Charge Controller, LED Lights, Solar DC Fan, Module Mounting structure, Subscriber end visual display / Tablet, AC-DC Adapter, and Conduit items like cable, PVC Pipes, and PVC Fittings. The system is designed to provide green energy for lighting and charging devices in a house.The Authority examined the applicant's submission and the relevant notifications. It was determined that the Solar Home Lighting System is covered under 'Solar power based devices' as per Entry No. 201A of Schedule II of the said notification.Issue 2: Applicable GST rate and HSN code for the Solar Home Lighting SystemThe applicant also sought clarification on the applicable GST rate and the HSN code for the Solar Home Lighting System. The Authority referred to the relevant HSN codes and the General Rules for the Interpretation of Import Tariff. It was concluded that the Solar Home Lighting System should be classified under heading 94055040.The applicable GST rate for the Solar Home Lighting System was determined to be 12% (CGST @ 6% and SGST @ 6%).Ruling:1. The supply of Solar Home Lighting System is covered under 'Solar power based devices' as per Entry No. 201A of Schedule II of Notification No. 1/2017-CENTRAL TAX (RATE), dated 28-6-2017, as amended by Notification No. 8/2021-CENTRAL TAX (RATE) dated 30-9-2021.2. The Solar Home Lighting System is to be classified under heading 94055040 and is taxable at a GST rate of 12% (CGST @ 6% and SGST @ 6%).3. The third question is not applicable as the first question was answered in the affirmative.This ruling is valid only within the jurisdiction of the Authority for Advance Ruling Uttar Pradesh and subject to the provisions under Section 103(2) of the CGST Act 2017 until and unless declared void under Section 104(1) of the Act.
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