Solar Panel Which Converts Sunlight into Electricity is Classifiable Under Heading No. 8541 and Taxable at 12% | AAR
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- Last Updated on 19 March, 2024
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Case Details: Authority for Advance Rulings, Uttar Pradesh Aastha Traders, In re - [2024] 160 taxmann.com 446 (AAR-UTTAR PRADESH)
Judiciary and Counsel Details
- Amit Kumar & Harilal Prajapati, Member
- Anand Kumar Verma for the Appellant.
Facts of the Case
The applicant was trading solar driven submersible water pumps and different components namely, solar panels, controller, and water pump. It filed an application for advance ruling to determine applicable tax rate on sale of solar panels and HSN code for solar panels as it would also help to determine correct classification of solar driven submersible water pumps.
AAR Held
The Authority for Advance Ruling noted that the solar panels are most critical component of a solar water pump as they convert sunlight into electricity. The panels are typically made of photovoltaic cells that convert sunlight into direct current (DC) electricity and also known as a photovoltaic panel. Therefore, solar panels would be classifiable under Heading No. 8541 43 00 and GST would be charged at 12%.
List of Cases Reviewed
- Re Sarj Educational Centre, In re [2019 (22) G.S.T.L. 315 (AAR-GST)](para 12) followed.
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