Ques: what is HSN code of solar submersible pump and what rate of tax applicable on it?
Ans:The GST rate applicable to solar submersible pumps is contingent upon the nature of supply and the manner in which the components are structured and invoiced.
1. When Supplied as a Standalone Solar Submersible Pump (Solar-Powered Device) be marketed as a renewable energy device.- 12% -8413
2. When Supplied as a Package with Other Goods (e.g., solar panels, controller, etc.) – rate has to be checked case to case
There are various Advance Rulings related to this having different views.
Relevant AAR for reference –
1. IN RE: M/S AASTHA TRADERS Case No.- UP ADRG 30/2023 dated 25.08.2023. – UP AAR
When supplying solar-driven submersible pumps along with other components like solar panels and controllers as a single package, the supply is treated as a mixed supply, and therefore, the highest GST rate among the components is applicable (typically 18% for pumps or controllers).
2. VERSA DRIVES PRIVATE LIMITED Case No. ORDER No. 17|AAR/2O22 DATED: 31.O3.2O22 – Tamil Nadu AAR
The AAR classified a solar submersible pump under the category of “solar power-based devices”, eligible for a concessional GST rate of 12%, falling under HSN 8413.
The GST rate on solar submersible pumps depends on how the supply is structured.
Note: This is only for information purpose and not be treated as a legal opinion, as GST classification is fact-specific.
