AAAR RAJASTHAN MODIFIES AAR RULING : SOLAR ENERGY- BASED WATER PUMPING SYSTEMS TO BE TAXED AS COMBINED SUPPLY OF GOODS AND SERVICES UNDER ENTRY 234 & 38 — EFFECTIVE GST RATE 8.9%

AAAR RAJASTHAN MODIFIES AAR RULING : SOLAR ENERGY- BASED WATER PUMPING SYSTEMS TO BE TAXED AS COMBINED SUPPLY OF GOODS AND SERVICES UNDER ENTRY 234 & 38 — EFFECTIVE GST RATE 8.9%

RAJASTHAN APPELLATE AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Before the Bench of:

1. Sh. Rakesh Kumar Sharma, Member (Central Tax)

2. Dr. Preetam B. Yashvant, Member (State Tax)

Case Title :- Shri Kailash Chandra, (Prop. Mali Construction)

(GST AAAR RAJASTHAN)

Appeal No. RAJ/AAAR/APP/09/2018•19 dated 01-03.2019

Advance Ruling No. RAJ/AAR/2018-19/32 dated 31.01-2019

Date of Judgement /Order- 15th May 2019

BRIEF OF FACTS

Para No. 4. The Appellant provides comprehensive water services to the clients both private and Government . At the time of applying before the Rajasthan Authority for Advance Ruling, GST, Jaipur, the Applicant ( now the Appellant) was in the process of bidding for tender floated by Public Health Engineering Department (PHED), a unit of Rajasthan Government, for Designing* Supply, Installation, Commissioning, Operation & Maintenance of Solar Energy based Bore Well Pumping Systems, Reverse Osmosis Plant and Operation & Maintenance of fluoride Control Project on ESCO and O & M contract.

Para No. 5. In relation to the said tender, the scope of the work included Designing, economically and efficiently best suited to site conditions including depth of water table and safe yield of Bore Well, finalizing alignment of SPV ( Solar Photo Voltaic) Plant Providing and Installation of complete Solar Power Operated Water Pumping System including De-Fluoridation unit and all other components & accessories as per specifications, Drawing & Design and making it operational and keeping operational upto complete O & M period for 7 years.

RULING

Para No. 9. The Rajasthan Authority for Advance Ruling. GST, Jaipur (‘hereinafter also referred to as ‘AAR’) vide its Advance Ruling Order No. RAJ/AAR/2018-J9/32 dated 31.12019, has classified the activities of Supply, Design, Installation, Commissioning and Testing of Solar Energy based Water Pumping Systems and O & M work by the Applicant as a Works Contract of Composite Supply and determined the rate of Tax at 12% C.GST @ 6% and SGST @ 6%  under HSN CODE 9954, since the same is proposed to be undertaken for the Government Department.

FINDING

Para No. 24.  In view of above, we hold that, with  respect to a Tender, identical to the Tender-Document No. 17/2016-17 ibid, which has been enclosed with the application dated 14.11-2018 filed by the Applicant/AppeIlant before the AAR, in terms of supply of Goods and Services the activities of supply, design, installation, commissioning and testing of solar energy based water pumping systems whose time of supply falls after  are both supply of Goods and supply of Services in terms of entry No. , read entry No, 38 ibid with rate of GSI’ as prescribed under these entries „ The Ruling dated 31-01.2019 passed by the Rajasthan Authority for Advance Ruling Goods and Services Tax, Jaipur accordingly needs to be modified in view of the discussions here in above. Accordingly, we pass the following order :-

ORDER

Para No. 25. We modify the Advance Ruling rendered by the Rajasthan Authority for Advance Ruling, Goods and Services Tax. Jaipur vide their Ruling No. RAJ/AAR/2018-19/32 dated 31„01.2019 and hold that with respect to a Tender, identical to the Tender Document No. 17/2016-17 ibid in terms of supply of Goods and Services , the activities of supply, design, installation, commissioning and testing of solar energy based water pumping systems , whose time of supply falls after 31.12-2018, ace Enth supply of Goods and supply of Services in terms of entry No. 234 ibid, read with entry Nov 38 ibid, with rate of GST as prescribed under these, entries. Consequently, the Appeal filed by the Applicant/AppeIIant i.e. Shri Kailash Chandra, Prop. Mali Construction, Sirohi is disposed of in above terms.