Solar Plants is Composite Service @18% GST or @5% as Independent Service

GSTC must examine the provisions of advance ruling. Has to be headed by a HC judge. Or it creates the mess that will be difficult to cure and it will be only filling banks of lawyers. 

A similar ruling was pronounced by Maharashtra Authority in case of Fermi Solar Farms, stating that irrespective of the fact that there are separate contracts for supply of goods and services for a solar power plant, the entire project of setting up and operation of a solar photovoltaic plant shall qualify as a works contract, taxable at 18%.

However, the Karnataka Authority on an application from Gririraj Renewables - the same applicant before the Maharashtra AAR that posed an identical case - held the contract was not a ‘composite supply’ and hence was taxable at 5%.