Sale of Solar Power Plant from unregistered state

[DS Pal]

Dear experts,

Company A (Registered with Himachal Pradesh GST) construct and sold a 'Solar Power Plant' situated in Himachal Pradesh to Company B (having a registered office in Uttar Pradesh) during 2018-19.

Company B is registered under GST in the state of Rajasthan only since year 2022 and last year PAN based turnover is totally exempt which is around 65 Lacs (Supply of Electricity).

Now, the Company B wants to sell the same to Company C (Haryana). Should Company B require to take GST registration in the state of Himachal Pradesh for this transaction?

OR Can Company B issue tax invoice from Rajasthan State?

Also Note: Such solar plant is standing in books of Company B as fixed assets. 

Please advise a possible solution.

Thank you.

AI Summary

Rajasthan company must register in Himachal Pradesh under Section 22(1) to sell solar plant there A GST-registered company in Rajasthan seeks to sell a solar power plant located in Himachal Pradesh to a Haryana company. The plant was originally purchased from a Himachal Pradesh company and is recorded as a fixed asset. Legal experts advise that since the solar plant constitutes immovable property, the place of supply is Himachal Pradesh per IGST Act Section 10(1)(c). Therefore, the seller must obtain GST registration in Himachal Pradesh as required under CGST Act Section 22(1) and cannot issue invoices from Rajasthan. Alternative solutions include treating it as a business sale or considering relevant precedents regarding solar plant classification.