Gst On Installation Of Solar Panels

The gst council issued clarity on the confusion over the rates for solar power projects.

Gst on installation of solar panels.

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. 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 info sheet discusses gst hst registration requirements and a person s eligibility to recover the gst hst paid or payable on the acquisition of a solar panel system where all of the electricity produced by the system is sold to the ontario power authority or its designate. 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.

A the applicable gst rate for supply of equipment for a solar power plant will be 5 equivalent to 70 of the plant cost. The total incidence of tax on the spgs would increase to 8 9 per cent with implementation of the gst.