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TMI Blog2019 (8) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... complishing the task of installation, commissioning, operation and maintenance of the System including DFU. DFU qualifies for other goods while Installation and Commissioning of the System are the Services which are not only taxable but are also being provided in relation to setting up of the System, a requirement of the Explanation to entry No. 234 ibid and entry No.38 ibid - Thus, the condition precedent to availment of the benefit of these entries i.e. supply of other goods and Services also, one of which should be a taxable service specified in the entry No. 38 , stands fulfilled. Thus, with respect to a Tender, identical to the Tender-Document No. 17/2016-17 ibid, which has been enclosed with the application dated 14.11.2018 filed by the Applicant/Appellant before the AAR, in terms of supply of Goods and Sendees, the activities of supply, design, installation, commissioning and testing of solar energy based water pumping systems, whose time of supply falls after 31.12.2018, are both supply of Goods and supply of Sendees in terms of entry No. 234, read with entry No. 38 ibid with rate of GST as prescribed under these entries. - Order No. RAJ./AAAR/02/2019-20 - - - Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erational and keeping operational upto complete O M period for 7 years. 6. The Appellant shall provide the potable water to the villagers regularly free of cost at the site of SPV Plant during and upto the end of O M period for 7 years. 7. On the expiry of the O M period, the Appellant is free to remove the plant at its cost and vacate the land subject to the prior intimation to P.H.E.D. and will take the possession of the plant. 8. In relation to such Tender, the Appellant was required to quote a rate for undertaking all the aforesaid activities which shall be inclusive of all the costs of site visits on the part of the Appellant, packaging, forwarding, spare parts, insurance and taxes duties as may be applicable. 9. The Rajasthan Authority for Advance Ruling, GST, Jaipur ( hereinafter also referred to as AAR ) vide its Advance Ruling No. RAJ/AAR/2018-19/32 dated 31.01.2019 = 2019 (2) TMI 917 - AUTHORITY FOR ADVANCE RULING, RAJASTHAN ., has classified the activities of Supply, Design, Installation, Commissioning and Testing of Solar Energy based Water Pumping Systems and O M work by the Applicant as a Works Contract of Composite Supply and determined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or 9983 or 9987 Service by way of construction or engineering or installation or other technical services, provided in relation of setting up of the following, - (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) Ocean waves/tidal waves energy devices/plants Explanation:- This entry shall be read in conjunction with serial number 234 of Schedule 1 of the Notification No. 1/2017-Central Tax (Rate), published in the Gazette of India, Extraordinary, Part II, section 3, sub section (i) dated 28th June, 2017 vide GSR number 673(E) dated 28th June, 2017. 9 - 16. Thus, rate of GST on supply of Goods and Services in relation to Solar Power based devices came to be as under : * 5% on value of Goods (Value of Goods to be taken as 70% of the gross consideration) * 18% on the value of Services (Value of Services to be taken as 30% of the gross consideration) * Effective rate of GST - 8.9% (5%x70% + 18%x30% = 8.9%) P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Rate) dated 28.06.2017 as inserted by the Notification No. 27/2018-Central Tax (Rate) dated 31.12.2018. Notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017 Schedule I-2.5% S.No. Chapter/ Heading / Sub-heading / Tariff item Description of Goods 1 2 3 234 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 (h) Photo voltaic cells, whether or not assembled in modules or made up into panels Explanation : If the goods specified in this entry are supplied, by a supplier, along with supplies of other goods and services, one of which being a taxable service specified in the entry at S. No. 38 of the Table mentioned in the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration of the abovementioned entries of the said notifications, we find that the Solar Energy based bore well water pumping system ( hereinafter also referred to as the System ) deserve classification under entry No. 234 of the Notification No. 01/2017-Central Tax (Rate) as Solar Power based devices . The Appellant has contended that benefit of Notification Nos. 24/2018-Central Tax(Rate) and 27/2018- Central Tax(Rate) inserting Explanation in the entry No. 234 ibid and inserting entry No. 38 ibid respectively should be available to them . After going through the amended entries 234 and 34 ibid, we find that the benefit is available only when the Solar Power based devices i.e. the System is supplied along with other goods and Services, one of which being a taxable service specified in the entry at S. No. 38 ibid. We find that a standard Solar Energy based bore well water pumping system comprises SPV panels, Structures, Storage tank, Controller, Pipe and Cables. The Appellant is also adding De-fluoridation unit (DFU) and also accomplishing the task of installation, commissioning, operation and maintenance of the System including DFU. DFU qualifies for other goods while ..... X X X X Extracts X X X X X X X X Extracts X X X X
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