GST on Sale of Used Wind Turbine Generators and Land
The Tamil Nadu Authority for Advance Ruling confirmed that selling a used wind mill attracts 12% GST, while land sales are exempt.
- Ruling
- Advance Ruling No.21 /ARA/2023 Dated: 20.06.2023
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Used wind mills sold as a unit attract 12% GST.
- The sale of land is not considered a supply under GST.
- The wind turbine is classified under HSN code 8412 80 30.
In short
Raja Deepam Spinning Mills asked the Tamil Nadu Authority for Advance Ruling (AAR) how to tax the sale of a used wind turbine generator and the land it sits on. The company wanted to know if the entire transaction was taxable and what HSN code to use for the machinery. The authority clarified that the machinery and the land must be treated separately for tax purposes.
What has changed
How it worked before
Businesses were often unsure if selling a running wind mill with its land should be treated as a single service or split into separate parts for tax calculation.
What has changed
The authority ruled that the wind mill is a supply of goods taxable at 12%, while the land is exempt from GST. This means you must clearly separate the value of the machinery from the value of the land in your sale agreement to avoid overpaying tax.
Who this affects
Businesses planning to sell used wind turbine generators or similar fixed assets installed on land.
An example
Imagine a textile company, Green Power Textiles, decides to sell its old wind mill and the plot of land it occupies. They sell the mill for 50 lakhs and the land for 20 lakhs in one deal. Based on this ruling, they should charge 12% GST only on the 50 lakhs for the mill and treat the 20 lakhs for the land as exempt from GST.
What you should do
If you are selling a wind mill, use this ruling to understand how the tax department views these assets. However, remember that an Advance Ruling only binds the company that asked and its specific tax officer. You should consult your own tax advisor to see if this logic applies to your specific sale agreement.
If you do nothing
If you assume this ruling automatically applies to your business and apply it incorrectly, your local tax officer may disagree with your tax calculation. This could lead to a demand for unpaid tax, interest, and penalties. Always verify your specific transaction with a professional rather than relying on a ruling meant for another company.
The terms explained
- Composite supply
- A set of goods or services provided together that are naturally bundled. In this case, the wind mill and its accessories are treated as one unit.
- HSN code
- A standardized system of numbers used to classify goods for tax purposes. It ensures that the correct tax rate is applied to specific products.
- Advance Ruling
- A formal decision from the tax authority on how GST laws apply to a specific business situation. It is not a general law for everyone.
The ruling in detail
Authority for Advance Ruling
Tvl. Raja Deepam Spinning Mills Private Limited
Advance Ruling No.21 /ARA/2023 Dated: 20.06.2023 · Tamil Nadu
Questions before the authority
- What is the rate of GST for used/running Wind Turbine Generator (WTG)/ Wind Mill with accessories for sale purpose?
- What are HSN Code 8 digits of Wind Turbine Generator (WTG)/ Wind Mill?
- What is the rate of GST for Wind Turbine Generator (WTG)/ Wind Mill installed land?
- What is the HSN Code 8 digits of Wind Mill installed land?
Facts
The applicant intends to sell a used Wind Turbine Generator (WTG) along with the land on which it is installed. The wind mill is proposed to be sold as a complete unit without dismantling, while the land portion will be transferred via a registered sale deed. The applicant sought clarification on the GST classification and taxability of both the wind mill and the underlying land.
Ruling
| Question | What the authority ruled |
|---|---|
| Rate of GST for used Wind Mill | 12% (6% CGST + 6% SGST) Classified as a composite supply |
| HSN Code for Wind Mill | 8412 80 30 Wind turbine or engine |
| GST on sale of land | Not liable to GST Treated as neither supply of goods nor services |
| HSN Code for land | Not applicable Sale of land is outside the scope of GST |
The authority ruled that the supply of the used wind mill with accessories constitutes a composite supply of goods liable to GST at 12%. Regarding the land, the authority held that the sale of land is not liable to GST as it is neither a supply of goods nor a supply of services. The HSN code for the wind turbine was specified as 8412 80 30.
Reasoning
The authority determined that the sale of the wind mill constitutes a supply of business assets under Clause 4 of Schedule II of the CGST Act. As the unit is sold without dismantling, it is treated as a composite supply of goods. The tax rate is determined by Notification No. 01/2017 Central Tax (Rate) as amended by Notification No. 08/2021. For the land, the authority relied on Clause 5 of Schedule III of the CGST Act, which excludes the sale of land from the definition of supply.
Provisions relied on
- Section 98 of the CGST Act, 2017
- Clause 4 of Schedule II of the CGST Act, 2017
- Clause 5 of Schedule III of the CGST Act, 2017
- Notification No. 01/2017 Central Tax (Rate)
- Notification No. 08/2021 Central Tax (Rate)
For the practitioner
This ruling confirms that the **sale of a running wind mill** as a composite unit attracts 12% GST, while the **transfer of the underlying land** is exempt from GST. It provides clarity for businesses disposing of fixed assets that include both machinery and real estate. Practitioners should note that this applies specifically to the sale of the asset as a whole unit.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/21_aar_2023rajadheepam.pdf
Legibility of the scan, as read: high.
Prepared 18-10-2026.
About Patron Accounting LLP
Patron Accounting LLP is a CA and CS-led accounting and compliance firm that has been working with businesses across India since 2019. We handle the work that keeps a company correct with every department it answers to: day-to-day bookkeeping and accounting, GST registration and returns, income tax filing and assessments, TDS, payroll and PF/ESI, company and LLP incorporation, ROC and MCA compliance, statutory and internal audit, physical stock and inventory audits, trademark and other registrations, and the certificates and reports that banks, buyers and regulators ask for.
Our clients range from a first proprietorship registering for GST to established companies running operations across several states. Much of our work is exactly this: reading what a department has published and telling a business, in plain terms, whether it changes anything for them.
We operate from five offices and serve clients across the rest of India remotely:
- Pune (HQ): RTC Silver, B4-708, Sai Satyam Park, Wagholi, Pune, Maharashtra 412207
- Mumbai: 104, Rajshila Building, 597 J.S.S. Road, Marine Lines, Mumbai 400002
- Delhi: 3rd Floor, B-6/154-155, Sector 5, Rohini, Delhi 110085
- Gurugram: Pioneer Urban Square, B109, Golf Course Ext Road, Sector 62, Gurugram 122098
- Ahmedabad: Phoenix Tower, 1107, near Commerce Six Road, Drive In Road, Navrangpura, Ahmedabad, Gujarat 380009
If anything on this page affects you and you would like somebody to look at your own position, we are glad to help. Call +91 94594 56700, write to sales@patronaccounting.com, or visit patronaccounting.com. The first conversation costs nothing.