Supply Of Solar Generating Power Station Is A Composite Supply, Would Not Amount To Works Contract; Attracts 5% GST: Andhra Pradesh High Court

The Andhra Pradesh High Court ruled that the supply of power generated by a solar generating power station would not be treated as a works contract and would attract only a 5% GST. The case involved the classification of solar power generation under GST, with the tax authorities arguing that it should be considered a works contract, which would attract a higher tax rate. However, the court ruled that the supply of solar power falls under a different category and should be subject to the lower GST rate of 5%. This decision clarifies the GST treatment of solar power generation and provides relief to the renewable energy sector by reducing the tax burden.