In another order aimed at reducing the ambiguities of the GST rate implementation on solar projects, the Authority of Advance Ruling (AAR) in Karnataka concluded that a turnkey engineering, procurement & construction (EPC) contract for the construction of solar power project in which both goods and services are supplied cannot be interpreted as a composite (a mix of components which make up a solar project) supply contract. Therefore, the supply of each component in a ‘Solar Power Generating System’ cannot have a flat tax rate of 5 percent GST.