GST RATE ON SOLAR PLANT INSTALLATION

[satbir singhwahi]

UNIT IS ASSEMBLING SOLAR PLANT PARTS TO INSTALLATION OF ROOF TOP SOLAR PLANTS. PLS GUIDE GST RATE AND HSN

AI Summary

GST for Rooftop Solar: 5% on Goods (70% of Cost), 18% on Services (30%) per Notification No. 1/2017 and 24/2018. A discussion on the Goods and Services Tax (GST) rate applicable to solar plant installations reveals that for assembling rooftop solar plants, a GST rate of 5% applies to the goods portion, deemed as 70% of the gross consideration, while an 18% GST rate applies to the service portion, deemed as 30%. This is based on Notification No. 1/2017-Central Tax (Rate) and further clarified by Notification No. 24/2018-Central Tax (Rate). The GST Council recommended this split to resolve disputes over GST rates for goods and services supplied together in solar power plant projects.