Applicant sought for advance ruling on whether in case of separate contracts for supply of goods and services for a solar power plant, there would be separate taxability of goods as solar power generating system at 5 per cent and services at 18 per cent.
However impugned agreement contended to be for supply of goods was actually a works contract involving engineering, design, procurement and commissioning of solar power plant. Further, contract contended to be for supply of services was also one for executing a works contract involving a provision of goods as well as services. Thus, depending upon nature of supply, intra state or inter-state, rate of tax would be governed by entry no. 3(ii) of the Notification No. 8/2017 – Integrated Tax(Rate under the Integrated Goods and Services Tax Act, 2017(IGST Act) or the Notification No. 11/2017 – Central Tax/State Tax (Rate) under the CGST Act and MGST Acts. The rate of tax would be 18 per cent under the IGST Act and 9 per cent each under the CGST Act and the MGST Act.