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TMI Blog2021 (8) TMI 739X X X X Extracts X X X X X X X X Extracts X X X X ..... ar, 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 44.006 7. Above 6KW(DC) and upto 10KW(DC) 43.005 8. Above 10KW(DC) and upto 25KW(DC) 38.006 9. Above 25KW(DC) and upto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 fees or penalty for delayed payment and direct subsidies(except government subsidies) are required to be added to the price(if not already added) to arrive at the taxable value; that as per Section 15(2)(e), subsidies directly linked to the price(excluding subsidie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 rectify their query in the original application by replacing words 'cost of the solar system' instead of 'ex-factory value'; that the solar subsidy scheme has been framed by the Ministry of Renewable Energy in order to reduce the carbon foot print and encourage the use of renewable energy and the scheme has been facilitated by the government through the DISCOM which is acting as f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 if the subject subsidy was given by the Government. In their reply, GUVNL vide its letter ACCTTS/GM(F&A)/Adv. Ruling / 584 dated 22-7-2021 submitted that the subsidy given by DISCOMs to empanelled Agencies/Vendors to execute Solar Rooftop PV systems in the residential premises of consumers under the 'Surya Gujarat' scheme is actually given by State Government/ Central Government and that the DISCOM is only a facilitator between th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 such escalations in the prevailing taxes/levies/duties. In no circumstances, escalation in the prices will be entertained.' 5 Para 57 , on Page 49 & 50 The F.O.R. Destination at consumers premises basis prices are including GST and Cess as applicable. The amount and % of GST and Cess as applicable should clearly be indicated separately. (GST/Cess means all applicable Tax/Cess under GST Laws. GST laws means IGST Act, GST(Compensation to the State for Loss of Revenue) A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Government, shall forthwith pay the said amount to the Government, irrespective of whether the supplies in respect of which such amount was collected are taxable or not.' 16. We find that the applicant has collected Subsidy from the Government in this regard and this subsidy amount is inclusive of GST, as detailed in aforementioned paragraphs, the applicant is required by law to pay to the Government the said amount in the subsidy representing GST, irrespective of the position of law that subsidy portion is to be deducted from the value of supply charged to the customer, for arriving at the taxable value. 17. The applicant sought Ruling on the implications of Section 17(2) CGST Act, if taxable value is derived after subtracting the subsidy amount from the system price. The provisions of Section 17(2) CGST are attracted when the applicant is effecting taxable supplies and exempt supplies. The subject supply of the applicant is a taxable supply and for the reason that taxable value for charging GST is arrived after subtracting subsidy, does not alter the nature of taxable supply. It remains taxable supply. Therefore, for this matter presented before us, there is no implicat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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