Gst On Solar Panels In India

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.

Gst on solar panels in india.

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. Passed on 1 st july 2017 india s goods and services tax gst is an indirect tax imposed on goods and services and replaces existing state and central taxes of a similar nature. The country s solar installed capacity reached 30 071 gw as of 31 july 2019. In a notification the department of revenue has said that after considering the recommendations of the commerce ministry s investigation arm dgtr.

See solar inverter brands sold by loop solar. India has imposed anti dumping duty of up to usd 1 559 per tonne on imports of a certain type of sheet used in solar cell making from china malaysia saudi arabia and thailand for five years to safeguard domestic players against cheap shipments. Furthermore this is considered as the best solar panel in india due to its efficiency and performance. However it can be sold as a part of a solar power plant at 5 gst.

India is planning to achieve 20 giga watt capacity before year 2022. India has the lowest capital cost per mw globally to install the solar power plants. Q what is the gst rate and hs code for solar module mounting strcture in india. The applicable hs code will be 73089090.

India has installed 1 2gw for solar cells and 5 6 gw for solar modules. Applicable gst rate on supply of solar power generating system in instant case the nature of work is of erection procurement and commissioning of solar generating system which falls under the ambit works contract services sac 9954 of notification no. Below information serves as a ready reference for the gst rates applicable along with relevant hsn codes for the solar industry in india. The gst council issued clarity on the confusion over the rates for solar power projects.

Luminous solar panel 325 watt 24 volts is utilized to produce electricity from solar panels. A gst rate for solar module mounting structure will be 18 when being bought from a fabricator by an epc company. However with the introduction of gst the domestic player will able to avail benefit from the elimination of the cascading effect of different taxes across the entire value chain of manufacturing production of solar modules. Solar power in india is a fast developing industry.

A gst rate for solar inverters in india is 5 and the applicable hs code is 85044090. The goal of the gst is to simplify the indirect tax for the country as a whole. The gst rate applicable on solar inverters is still under debate with some vendors invoicing at 5 gst and others at 28.