AI Drafter 
TaxTMI 
TaxTMI 
2018 (6) TMI 466
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....t fee under CGST and Rs. 5000/- against fee under SGST) vide CPIN Number 18013700040367, dated; 12-01-2018, and found the payment paid by the applicant is genuine as per common portal. As the applicant is an unregistered person, the application is not forwarded to any jurisdictional authority. To admit and to pronounce advance ruling on this application, this authority feels it is necessary to hear the applicant. Accordingly a personal hearing fixed on 04th April 2018, requested the applicant to attend with all relevant data. The applicant attended himself before this authority on 04th April, 2018 and made oral submissions on the issue, where advance ruling sought by him. On perusal of application, oral submissions made by the applicant, and read with the provisions of the law, the following are the observations by this authority. 1. The Issues raised by the applicant is as follows., Issue No. 1 Whether supply of solar power plant under 'Turnkey EPC Contract' is supply of 'solar power generating system' under Entry 234 of Schedule I of the Notification No. 1/2017- Integrated Tax (Rate), Entry 234 of Schedule I of the Notification No. 1/2017- Central Tax (Rate) ....
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....e time of supply of power plant shall be determined under Section 31 (4) of the CGST Act/SGST Act read with Section 12(2) thereof? The Issues raised by the applicant is fit to pronounce advance ruling as they falls ambit of the Section 97(2) (a), (b) and (c), they are as given under (a) Classification of any goods or services or both; (b) Applicability of a notification issued under the provisions of this Act; (c) Determination of time and value of supply of goods or services or both Further, the applicant being a unregistered person, as per the declaration given by him in Form ARA-01, the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Basing on the above observations, the application is 'admitted', to pronounce advance ruling. As per the submissions given by the applicant In Turnkey EPC Contract, the Applicant is required to undertake all activities, civil or otherwise, to supply the power plant in ready to operate condition. The scope of work typically involves: (i) Civil works like leveling of ground and wall boundary, internal roads, building foundations for mounting ....
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....ii. Supply of nut, bolts, fasteners and other miscellaneous materials e. Test & Commissioning B. Equipment and components are delivered at project site and stored at the risk of the Applicant C. Ownership is transferred on successful commissioning of the plant D. Payment is as per milestone or monthly depending on the % of goods delivered at site E. Full payment is released on successful commissioning of the plant with stipulated power generation. F. Cost: a. In the case of Ground Base Solar Project: 20% Civil & Erection & 80% Supply. Roof Top Base Solar Project: 10% Civil & Erection & 90% Supply. For Issue number 2, the statement of facts are as follows... The scope of supply includes: a. Detailed designing of power project b. Procurement and supply at project site i. Solar photovoltaic modules/panels/array ii. Panel mounting structure iii. Solar tracker iv. Meteorological equipment v. Cables vi. Combiner box vii. Solar power conditioning unit viii. Inverter ix. Isolator x. Transformer xi. Switchbox xii. Conductor xiii. B....
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.... ' Liquidated Damage Charges will be applicable on the total contract value of Supply Contract + Erection contract. For Issue number 4, the statement of facts is as follows.... A. Scope of supply includes procurement and supply at project site i. Solar photovoltaic modules/panels/array ii. Panel mounting structure f iii. Solar tracker iv. Meteorological equipment v. Cables vi. Combiner box vii. Solar power conditioning unit viii. Inverter ix. Isolator x. Transformer xi. Switchbox xii. Conductor xiii. Battery xiv. Transmission tower xv. Steel/plastic tubes & pipes xvi. SCADA Software B. Equipment and components are delivered at project site and risk is transferred to the customer C. Payment is as per milestone or monthly depending on the % of goods delivered at site. Full payment is released on successful commissioning of the plant with stipulated power generation. For Issue number 5, the statement of facts is as follows.... A. The scope of supply includes: a. Civil works i. leveling of ground ii. Wa....
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....ly depending on the % of goods delivered at site Full payment is released on successful commissioning of the plant with stipulated power generation. And for Issue number 8, the statement of facts is as follows... The contract stipulated successive payment against successive statements depending on the milestone stipulated in the contract. On analyzing the Issues, with respect to the CGST/SGST Act, rules, and notifications released from time to time, it is to note Entry number 234 of Schedule I ( which are taxable @ 2.5% ) of notification 01/2017 -Central Tax ( Rate), dated :28'h June 2017, is relevant to the Issues raised by apolicant. Entry 234 reads as... S. No. Chapter/Heading/ Sub-heading/Tariff item Description of Goods 234 84 or 85 Following renewable energy devices & parts for their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants/devices (f) Solar lantern/solar lamp (g) Ocean waves/tidal waves energy devices/plants (II) Further, as per Explanation (iii) of the said Rate Notification, chapter hea....
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....submitted by the applicant, the scope of work in respect of "Turn key EPC Contract" and "Other EPC Contract" includes civil works, procurement of goods and erection and commissioning. Accordingly, "Turnkey EPC Contracts" and "Other EPC Contracts" are not getting covered under supply of 'solar power generating system' under Entry 234 of Schedule I of the Notification No. 1/2017- Integrated Tax (Rate), Entry 234 of Schedule I of the Notification No. 1/2017- Central Tax (Rate) both dated 28 June 2017 and Entry 234 of Schedule I of the Notification No. 1/2017- State Tax (Rate) dated 29 June 2017. Issue No.3: Whether supply of solar power plant under 'Supply Contract' is supply of 'solar power generating system' under Entry 234 of Schedule I of the Notification No. 1/2017- Integrated Tax (Rate), Entry 234 of Schedule I of the Notification No. 1/2017-intergrated Tax (Rate), Entry 234 of Schedule I of the Notification 1/2017-Central Tax (Rate) both dated 28 June 2017 and Entry 234 of Schedule I of the Notification No. 1/2017- State Tax (Rate) dated 29 June 2017 where the assembly, erraction, and commissioning of the solar power plant is undertaken by the Applicant under a separate cont....