TAXATION

[Abhijeet]

Hi Bappa,

Let me answer your query separately from the perspective of applicable GST and Custom duty rates for WTE/ biogas projects:

Applicable GST

The government circular (serial number 234 of Schedule I of the notification No. 1/2017- Integrated Tax Rate) https://howtoexportimport.com/Integrated-Tax-Rate-Notification-No-1-of-2017-DT-2-7476.aspx

states that there is 12% GST on equipment for biogas plants, which falls under GST chapters of 84,85, and 94 only. HSN for Chapter 84 list of equipment is attached for instance; likewise, you can get the equipment list and corresponding HSN for chapter 85 and 94. Look out for fabric, if it get covered within these chapters.

Furthermore, be apprised that a supplier to a WTE project should satisfy himself that goods falling under Chapter 84, 85 and 94, say a compressor, pump, and so on, is actually going to be used in the WTE/ biogas project. In this context, it is clarified that GST is to be self-assessed by a taxpayer. Therefore the supplier needs to satisfy himself with requisite documents from buyer such as supply contracts/order for WTE/ Biogas project before supplying goods under concessional category cited under S. No. 234 in Schedule I of GST rates.

Concessional Custom duty

As per notification of MNRE, a concessional basic custom duty (BCD) of 5% is applicable across imports related to WTE/ biogas projects. However, one need to get the concessionary request form ( in attached format) approved from MNRE for hassle free custom clearance. However, there could be concerns with respect to application of the concessionary rates depending on the supply chain level of the supplier (if other than primary level) relative to a WTE/ biogas project.

[Deleted User]

@Abhijeet That’s looks an interesting
response but, we are exploring Bio-CNG or CBG project. We would like to
understand GST rate applicable for EPC project, more particularly from the
standpoint of demarcating service and the supply part. I hope, you can help us get this information.