AAR, GST on Solar Power Plant components & erection, Composite Supply, rates & valuation: Case of Sunshell Power, AAR WB Ruling Dated 8th May 2025. The applicant is engaged in the business of erection, commissioning and installation projects in the renewable energy sector. The said scope of work would include EPC contracts for rooftop solar power plant including supply of multiple components within the said power plant. This would include monocrystalline panel, inverter with remote monitoring, fixing structure and relevant accessories.
— AAR ruled that the supply of components of the solar power plant along with the erection of the same would be treated as a composite supply of the nature of works contract. As per Entry no. 201 of Notification No. 01/ 2017, tax rate should be 12% IGST on seventy per cent. of the gross value charged by the supplier and 18% IGST on thirty per cent. of the gross value charged by the supplier. The value referred to here is the gross consideration charged by the supplier for the entire supply.