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Issue ID: 119995
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Taxability on sale of solar panel and its installation services

Date 10 May 2025
Replies 5 Replies
Views 5217 Views
GST rate on solar panel supplies varies by whether installation is a composite supply or a separable service.
GST treatment depends on whether installation is provided and invoicing structure. Product-only sales attract the goods rates applicable to each item; panels typically attract a lower goods rate while other components attract the standard rate. Where panels and installation form a single supply or are invoiced together, the transaction is a composite supply and the panel's rate applies to the whole. If contractual elements are not independent, deemed valuation/apportionment rules may apply to allocate rates between goods and services, affecting the effective blended tax and ITC availability. (AI Summary)

What is rate of GST on sale of solar panel and related product when the same has been sold independently without providing installation services of such solar panel. And tax invoice for sale of solar panel and related product is issued only.

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What is rate of GST on sale of solar panel and related product when the same has been sold including providing installation services of such solar panel. However tax invoice for sale of solar panel and its installation services is issued separately.

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What is rate of GST on sale of solar panel and related product when the same has been sold including providing installation services of such solar panel. However tax invoice for sale of solar panel and its installation services is issued singly.

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