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 solar generating power from a station does not constitute a works contract and is therefore subject to a 5% GST, rather than the higher rate applicable to works contracts. The Court's decision clarifies the distinction between the provision of solar power and the execution of works contracts, ensuring that the taxation applicable to solar power generation is more favorable. The ruling is significant for the renewable energy sector as it provides clarity on the GST treatment of solar power, which may encourage further investment and development in clean energy initiatives.