The GST on solar products has been increased from 5% to 12%. From 1st October onwards all solar products or solar panel systems will attract a GST of 12%.
Therefore, in this article, I’ve explained the billing pattern of the on-grid solar panel system and how the tax structure should be on the invoice.
Billing Pattern for Hybrid Solar Panel System
Hybrid Systems will have the same taxation as On-Grid systems. However, if we opt for individual item billing patterns, need to bill the battery at 18% and the description to be “Batteries for Solar system”.
Recommendation: Most of the houses are already having normal inverters for their critical load, so it’s better to go with a simple On-Grid solar system.
The system will be simple, less costly, less complicated and less maintenance, and ultimately you will save your electricity bill, resulting in faster payback.
There are broadly 2 types and each has 2 subtypes.
- Total System Billing
- Intra-State Billing
- Inter-State Billing
- Each Product Billing
- Intra State Billing
- Inter-State Billing
Intra-State GST Invoice on Solar Panel System
Below is an example of an intra-state GST invoice as per the 70:30 ratio pattern,
| Rate Rs 50000 Per kW – System capacity 4 kW | |||||
| Sl.no | Particulars / Item | HSN | Quantity | Rate | Amount |
| 1. | Solar Modules & Solar Inverter | 8541 | 1 | 140000 | 140000 |
| 2. | BOS & Services ( assumed amount) | 9954 | 1 | 60000 | 60000 |
| Total | 200000 | ||||
| (70% @12% : 30% @ 18 %) | |||||
| CGST 6% | 140000 /- | 8400 /- | |||
| SGST 6% | 8400 /- | ||||
| CGST 9% | 60000 /- | 5400 /- | |||
| SGST 9% | 5400 /- | ||||
| Grand Total | 227600 |
BOS & Service includes 18% tax: Electrical fittings, CCTV, plumbing, civil work, transportation, Tin shed, structure, Land leveling, LA, earthing, ACDB, DCDB, etc.
Inter-State GST Invoice on Solar Panel System
Below is an example of an inter-state GST invoice as per the 70:30 ratio pattern,
| Rate Rs 50000 Per kW – System capacity 4 kW | |||||
| Sl.no | Particulars / Item | HSN | Quantity | Rate | Amount |
| 1. | Solar modules & solar inverter | 8541 | 1 | 140000 | 140000 |
| 2. | BOS & Services (assumed amount) | 9954 | 1 | 60000 | 60000 |
| Total | 200000 | ||||
| (70% @12% : 30% @ 18%) | |||||
| IGST 12% | 140000 | 16800 | |||
| IGST 18% | 60000 | 10800 | |||
| Grand Total | 227600 |
BOS & Service includes 18% tax: Electrical fittings, CCTV, plumbing, civil work, transportation, Tin shed, structure, Land leveling, LA, earthing, ACDB, DCDB, etc.
Separate Intra-State GST Invoice on Solar Panel System
Below is an example of a separate Intra-state GST invoice on a solar panel system,
Invoice 1 – For 12% GST:
| Rate Rs 50000 Per kW – System capacity 4 kW | |||||
| Sl.no | Particulars / Item | HSN | Quantity | Rate | Amount |
| 1. | Solar modules ( 500 Wp * 8 nos) | 8541 | 8 | 15000 | 120000 |
| 2. | Solar inverter ( Price assumed ) | 8504 | 1 | 50000 | 50000 |
| Total | 170000 | ||||
| CGST 6% | 10200 | ||||
| SGST 6% | 10200 | ||||
| Grand Total | 190400 |
Invoice 2 – For 18% GST:
| Rate Rs 50000 Per kW – System capacity 4 kW | |||||
| Sl.no | Particulars / Item | HSN | Quantity | Rate | Amount |
| 1. | BOS – Erection, Installation & Commissioning Services | 9954 | 1 | 30000 | 30000 |
| Total | 30000 | ||||
| CGST 9% | 2700 | ||||
| SGST 9% | 2700 | ||||
| Grand Total | 35400 |
Information Compiled By
- Yogesh Mundhra
For more information on taxation, you can contact & coordinate with Mr. Yogesh Mundhra on his WhatsApp No: 9168616101. - Ajit Bahadur
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