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 off-grid solar panel system and how the tax structure should be on the invoice.
Off-Grid Solar Panel System Components
An off-grid solar panel system consists of:
- Solar PV Modules
- AC/DC Cable
- ACDB & DCDB Boxes
- Solar Structure
- Solar Inverter
- Cable Trays
- Walkways
- Safety Lines
- Battery
The GST on the battery is 28%. So, to avoid 28% GST the billings are done as the off-grid solar systems. In an off-grid solar system, the battery acts as an important part (storage). Hence, the total system is sold with 12% GST.
You can check this in the market also. Just try to buy a battery, the GST charged will be 28%. And if you buy an Off-Grid Solar system in which there is a solar module, inverter & battery, then the GST charged will be 12%.
Billing Pattern for Off-Grid Solar Panel System
Intra-State GST Invoice on Solar Panel System
Below is an example of an intra-state GST invoice,
| Rate Rs 90000 Per kW system capacity 4 kW with 12 V 150 Ah – 10 battery (numbers assumed) | |||||
| Sl.no | Particulars / Item | HSN | Quantity | Rate | Amount |
| 1. | Off-Grid Solar System | 8541 | 1 | 360000 | 360000 |
| Total | 360000 | ||||
| CGST 6% | 21600 /- | ||||
| SGST 6% | 21600 /- | ||||
| Total | 43200 |
Inter-State GST Invoice on Solar Panel System
Below is an example of an inter-state GST invoice,
| Rate Rs 90000 Per kW system capacity 4 kW with 12 V 150 Ah – 10 battery (numbers assumed) | |||||
| Sl.no | Particulars / Item | HSN | Quantity | Rate | Amount |
| 1. | Off-Grid Solar System | 8541 | 1 | 360000 | 360000 |
| Total | 360000 | ||||
| IGST 12% | 43200 | ||||
| Grand Total | 403200 |
NOTE: Individual billing is also an option but definitely making more GST charges as for Off-Grid system blanket charges are 12%.
However, all BOS is at 18% and Battery at 28% resulting in a very very high cost to end consumers under B2C trade. Hence this option is not advisable.
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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