AAR : EPC contract for solar power plant erection and installation, a works contract, taxable at 18%

Rajasthan AAR holds that Erection, Procurement and Commissioning of Solar Generating System falls under the ambit of “Works Contract Service” (SAC 9954) under Notification No. 11/ 2017 – Central Tax (Rate) dated June 28, 2017, taxable at 18% IGST or 9% CGST and 9% SGST; Opines that such plant would have an inherent element of permanency as it is meant for outward sale of power to the consumer while stating that a reading of the contract indicates that the plant would co...