India impose 18% tax on Solar Cells and modules under GST Policy

Indian Government has proposed an 18% tax for solar cells and modules under its new national  Goods and Services Tax (GST) policy. GST rates for different sectors and products announced on May 19. There is still scope for changes to the rates before they are set in stone.

Solar cells and modules will be levied at 18% with coal seeing an additional 5% charge. Indian tenders at national and state level have secured a number of record low bids in recent months.

Union minister for power, coal, new & renewable energy and mines, Piyush Goyal stated in a press conference that higher tax rate would not slow down the growth of solar. Tariffs for solar projects vary from project to project. The rise will be compensated by the decline in corruption and operational difficulties. The prices of solar and wind energy have hit a record low and the industry is now able to stand on its own feet. A study by the Council on Energy, Environment and Water (CEEW) predicted that the GST could add 9.5% to the cost per kWh of production in India.