The Maharashtra Authority of Advance Ruling (AAR), posing Rajiv Magoo and T.R. Ramnani, has mentioned that 18% GST is subjected to be furnished on PV DC cables.
The petitioner does the business of manufacturing and supplying solar cables, commonly known as photo-voltaic DC cables (PVDC cables), and is selling in the name of various brands. The cables would be made via copper conductors with cross-linked polyolefin (XLPO) insulation and are used between solar modules and inverters in a photovoltaic system
The petitioner provides the cables to its customers for commissioning and stationing of the solar power generating systems (SPGS). The cables connect the solar panel or array with the inverters with the objective of carrying electricity between solar panels and inverters. The cables are only used by manufacturers of SPGS, Procurement, Construction Company (EPC Company), to set up a solar power plant as inputs towards transmitting direct current via PV module in SPGS. the cables are precisely designed and tailor-made for solar power projects. Hence the cables would have limited application and are being utilized in a photovoltaic system only for the generation and transmission of solar energy.
The petitioner seeks an advance ruling on the problem of GST rates on PV DC cables manufactured and supplied through Leoni Cable Solutions (India) Pvt Ltd to its customers who are engaged in the solar power generating systems business or EPC companies setting the solar power plant.
The AAR sees that PV DC cables manufactured and provided by the petitioner to its customers shall be categorized beneath Entry number 395 of Schedule III of Notification No. 1/2017-Central Tax (Rate) (as amended) dated June 28, 2017, and liable to GST rate at 18%.
