GST on Solar Plant

[Ethirajan Parthasarathy]

Dear All

One of my clients wants to transfer the solar plant under “as is where is” basis which was assembled at his land few years back. Materials used for assembling were subject to various rates of GST. At what rate GST is to be charged? He will lease out the land to the buyer.

Can we treat this as composite sale, thus attracting GST @12% which is applicable to solar panel being principal supply?

Dear All

One of my clients wants to transfer the solar plant under “as is where is” basis which was assembled at his land few years back. Materials used for assembling were subject to various rates of GST. At what rate GST is to be charged? He will lease out the land to the buyer.

Can we treat this as composite sale, thus attracting GST @12% which is applicable to solar panel being principal supply?

Dear All

One of my clients wants to transfer the solar plant under “as is where is” basis which was assembled at his land few years back. Materials used for assembling were subject to various rates of GST. At what rate GST is to be charged? He will lease out the land to the buyer.

Can we treat this as composite sale, thus attracting GST @12% which is applicable to solar panel being principal supply?

[DR.MARIAPPAN GOVINDARAJAN]

Why the same query was repeated?

[Raam Srinivasan Swaminathan Kalpathi]

The supply of solar plant and lease of land is NOT a composite supply for the simple reason that these are not naturally bundled.  My suggestion would be to raise a separate supply invoice for solar plant @12% and a separate lease supply invoice at 18%.

[Shilpi Jain]

See if this can be regarded as a going concern sale. Further facts are required to conclude on this. If a going concern sale then no GST will be liable.

[Ethirajan Parthasarathy]

Thank you experts

AI Summary

GST treatment of solar plant transfer: treat plant and land lease as separate supplies, or consider going-concern sale exemption.
The transfer of an assembled solar plant "as is where is" with a concurrent lease of the land raises whether the transaction is a composite supply or separate supplies. One view is that solar plant supply and land lease are not naturally bundled and should be invoiced separately; an alternate view is that, if the transfer qualifies as a sale of a going concern, GST may not apply, dependent on factual conditions.