TaxTMI 
TaxTMI 
2021 (8) TMI 739
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...., Regd. & Corporate Office, "Paschim Gujarat VijSevasadan", Laxminagar, Nana Mava main road,Rajkot-360004. 2. The applicant has submitted that under the above mentioned scheme, beneficiaries could avail benefits of 40% subsidy of solar system cost for systems upto 3KW and 20% subsidy of solar system cost for systems from 3KW-10KW; that the beneficiaries have to pay the channel partner the amount after deducting the subsidy portion from the total system cost and after successful installation of the solar system, the channel partner has to apply to the respective electricity distribution company(DISCOM) of the region for subsidy and the funds are released by the respective DISCOM directly to channel partners; that the total rate discovered through tendering process for the year 2019-20 is as follows(as per Empanelment letter PGVCL/DSM/SRT/ 9430 dated 12-9-19): Sr.No. Solar Rooftop PV System Capacity range in KW Total Rate in Rs. Per Wp(DC) (including GST) 1. 1.00 - 1.5KW DC 46.827 2. 1.51 - 2.5KW DC 46.555 3. 2.51 - 3.5KW DC 46.337 4. 3.51 - 4.5KW DC 45.738 5. 4.51 - 5.5KW DC 45.030 6. 5.51 - 6.0KW DC ....
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....all be not less than 1 KW for single site; that all provisions as amended by State/MNRE, GOI from time to time in respect of subsidy, norms of admissible beneficiary and allowable capacity of PV systems shall be applicable to this scheme accordingly; that remaining cost will be borne by beneficiary; that GOG subsidy shall be governed @ 40% OR 20% as the case may be of the above bench mark cost or lowest price that shall be discovered under this EOI; that state subsidy of 40% shall be available for solar roof top systems upto 3KW; and 20% for solar roof top systems beyond 3 KW and upto 10KW, installed and commissioned by private residential consumers; that the above subsidy shall be in parallel with the Central financial assistance of the Government of India available through its Ministry of New and Renewable Energy(MNRE) i.e. the available subsidy shall be either of the state subsidy or MNRE subsidy, but not both. 5. As per GST Law, valuation of GST "it includes any taxes, fees, charges levied under any law other than GST law, expenses incurred by the recipient on behalf of the supplier, incidental expenses like commission and packing incurred by the supplier, interest or late f....
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....earing on these issues, as follows: i. The First Question on which Ruling was sought refers to subsidy being reduced from the ex-factory valu ein order to collect the GST on goods supplied. We informed the applicant that the ex-factory value mentioned is not in consonance with the cited EOI as the price in the contract is based on System Cost as per para 52 of the said EOI. ii. Shri Patel was informed that Questions (B) and (C) were not covered under any clauses of Section 97(2) CGST Act, 2017 and thereby not admissible. Additional Submissions by the Applicant: The applicant vide letter dated nil, received on 21-6-21, rephrased the Advance Ruling Questions as follows: (A) Whether subsidy amount is to be reduced for arriving at the taxable value of the solar system from the system price declared by the Nodal agency? And the GST liability shall be on the taxable value calculated after subtracting the subsidy amount from the system price? (B) What will be the implication of sub-section (2) of Section 17 if the taxable value is derived after subtracting the subsidy amount from system price? 8. The applicant submitted that they recti....
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....ar system supplier would like to know regarding the proportionate reversal of the input tax credit to be reversed (on the material used for making solar system) in respect to the subsidy portion on which their GST liability would be reduced. D. FINDINGS: 11. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and GGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 12. We have carefully considered all the submissions made by the applicant. To accord the benefit to deduct subsidy portion for arriving at transaction value with the customer, the applicant was not able to produce evidence that the subsidy was indeed given/borne by the Government. Therefore, we requested the assistance of Gujarat Urja Vikas Nigam ltd (GUVNL) authorised nodal agency for implementation of the scheme in the State, vide letter dated 8-7-2021 issued Vide F.No. GAAR/AR-2021/F-06/75176 to inform i....
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....t Tax, welfare cess or any other taxes applicable to such work. Any escalation in such taxes/levies during the tenure of the offer/Empanelment will not be paid by Consumers and Bidders are advised to take into consideration any such escalations in the prevailing taxes/levies/duties. In no circumstances, escalation in the prices will be entertained.'] 4 Para 52, page 48 'Rates quoted by Bidder should be FIRM and on F.O.R. destination at consumers premises basis, price shall be inclusive of taxes, levies, duties, packing, forwarding, freight, insurance, loading, unloading, supply, installation, commissioning, meter charges, meter testing fee, SMC Box charge, connectivity charges, 5 years CMC Charges etc. and any/all charges for successful Supply and Installation of the systems at any locations in the State of Gujarat and all other miscellaneous expenses of marketing, commissions etc. if any. The rates quoted by the Bidder will be inclusive of GST, Work Contract Tax, or any other taxes applicable to such work. Any escalation in such taxes/levies during the tenure of the offer/Empanelment will not be paid by Consumers and Bidders are advised to take into consideration any s....