Composite Supply — The Applicant are engaged in the operation of renewable energy power plant projects, which typically include operation of solar power plants set up across India for generation and distribution of electricity generated. The Applicant sought Advance Ruling on the question Whether in case of separate contracts for supply of goods and services for a solar power plant, there would be separate taxability of goods as ‘Solar Power Generating System’ at 5% and services at 18% and; Whether benefit of concessional rate of 5% of solar power generation system and parts thereof would also be available to sub-contractors. The Authority ruled out that the benefit of concessional rate of 5% of solar power generation system and parts thereof would be available to sub-contractors if the sub-contract is only for supply of goods. If the entire EPC contract is sub-contracted then the rate of tax applicable shall be the same as that applicable to the contractor.  — Solarsys Non-Conventional Energy Private Limited, In Re… [2019] 16 TAXLOK.COM 201 (AAR-Karnataka)