The Indian state of Gujarat's Appellate Authority for Advance Ruling (AAAR) has held that Goods and Service (GST) would apply to supply aluminium foil-type winding inverter duty transformers and components.
Shilchar Technologies Limited, the appellant, manufactured power, distribution, electronics, and telecommunications transformers. The Ministry of New & Renewable Energy has given The Adani Green Energy Ltd (AGEL) the go-ahead to design and establish a solar project (UPNEDA Project) in Chitrakoot, Uttar Pradesh.
The appellant secured a supply order from AGEL for 'Aluminium Foil Type Winding Inverter Duty Transformers' (IDT) along with the mandatory spares for transformers.
The applicant has solicited the advanced ruling on whether the supply of the aluminium foil type winding inverter duty transformer and parts of the transformer supplied / to be provided for the initial set-up of the solar project is liable to Central GST at the rate of 2.5 per cent along with State GST at the rate of 2.5 per cent.
A person named Dhruvank Parikh argued on behalf of the appellant that the explanation inserted at Sr. No 234 to the schedule -l of Notification No. 0ll20l7-Central Tax (Rate) dated 28th June 2017 as amended would not be relevant because they had been issued two different contracts by the recipient of supply as the provision of goods and services and had separately bid on those contracts.
The authority of SGST and CGST held that the appellant was liable for payment of GST on the total value of both the purchase order, i.e. supply of goods and supply of services in terms of Explanation Entry inserted vide Notification No’234 to Notification No. 0l/2017- central Tax (Rate) dated 28.06.2017 vide No’ 24/2018-central Tax (Rate) dated 31.12.2018 and liable to be taxed, up to 30.09.2021 as 3.5 per cent GST on goods and 5.4 per cent upon services.
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