GST on solar EPC contracts set at 8.9% by Andhra Pradesh HC
Andhra Pradesh High Court ruled GST on Solar EPC contracts at 8.9%, overturning 18% assessment. This decision affects Vikram Solar Limited, which argued for a lower tax rate based on component supply. The ruling may improve profitability for solar EPC firms.
after close1 source ↓written by the desknot a recommendation
- using
- 8.9%
- using
- 70:30 valuation formula
- assessment
- 18%
- under prior notifications
- 5%
The Andhra Pradesh High Court ruled that GST on Solar Engineering, Procurement and Construction (EPC) contracts is applicable at 8.9% using the 70:30 valuation formula, overturning the previous 18% assessment. This decision impacts Vikram Solar Limited, which argued that its contracts involve components taxed at 5% under prior notifications.
This ruling could enhance profitability for solar EPC firms by reducing tax liabilities, potentially boosting sector sentiment.
Not investment advice. For informational purposes only.