EPC contract for solar power plant

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..... EPC contract for solar power plant
Query (Issue) Started By: - Amutha Balasubramanian Dated:- 1-12-2023 Last Reply Date:- 16-12-2023 Goods and Services Tax - GST
Got 3 Replies
GST
There is an option available to pay taxes on 70% of Gross Consideration for materials and 30% of gross consideration on Services @ 18%. Is this facility optional or mandatory?? Notification number 08/2021 Ce .....

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..... ntral taxes (Rate) dated 30/09/2021 refers Reply By Amit Agrawal: The Reply: Subject referred by you, is issued in exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017) Relevant explanation from notification referred by you, reads as follows: Explanation:- If the goods specified in this en .....

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..... try 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 notification No. 11/2017-Central Tax (Rate), dated 28th June, 2017 [G.S.R. 690(E)], the value of supply of goods for the purposes of this entry shall be deemed as seventy per cent. of the gross consideration charged .....

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..... for all such supplies, and the remaining thirty per cent. of the gross consideration charged shall be deemed as value of the said taxable service.] If supplier is fulfilling conditions of this explanation and supplying defined goods & defined services, then, it is mandatory to follow 'deemed value' for goods (i.e. 70%) & services (30%) supplied. P.S. I am presuming the constitutional va .....

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..... lidity of Section 17(5) read with above referred notification. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Amit Agrawal: The Reply: However, it appears to me that above-said explanation can not seen as 'overruling' the 'Section 7(1A) read with Serial No. 6 (a) of Schedule - II' or Section 8 of the CGST Act, .....

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..... 2017. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Shilpi Jain: The Reply: This method of deemed valuation and rate of tax is under challenge in a high court.
Discussion Forum - Knowledge Sharing .....

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