Gst On Installation Of Solar Panels

Gst on solar power generating plant and other renewable energy plants gst rate of 5 rate has been prescribed on renewable energy devices parts for their manufacture bio gas plant solar power based devices solar power generating system sgps etc falling under chapter 84 85 or 94 of the tariff other goods or services used in these.

Gst on installation of solar panels.

The gst council issued clarity on the confusion over the rates for solar power projects. While solar panels were classified under 5 per cent tax slab industry had contested saying other equipments such as metals electrical material etc are under different and higher tax slabs which would increase the cost of power project. The solar power developer association spda has demanded the goods and services tax rate be kept uniform at 5 per cent on solar power generating system spgs saying recent recommendations of the gst council are inconsistent with the government s policy of promoting clean energy. However for installation and engineering services epc companies and installers will need to raise a separate works contract equivalent to 30 of the overall bill with a gst rate of 18.

If the rooftop solar systems which includes solar panels come under 5 gst across india as it seems from the paper published by the gst council then it is a big step forward and the residential commercial and industrial consumers should take up this opportunity to go solar with a uniform tax rate. The total incidence of tax on the spgs would increase to 8 9 per cent with implementation of the gst.