GST Rate Cut Sparks Boost in Renewable Energy Sector
The GST Council has reduced GST rates on renewable energy devices and parts from 12% to 5%, significantly lowering costs and encouraging investment in clean energy. This move is expected to accelerate India's transition to cleaner power sources, enhance industrial competitiveness, and support broader economic growth.
- Country:
- India
In a significant policy move, the GST Council cut the GST rate on renewable energy devices and parts from 12% to 5%, effective September 22. This decision is poised to reduce costs across the power value chain, enhancing the viability of clean energy projects and accelerating their adoption, experts say.
The rate reduction extends to fuel cell motor vehicles, solar cookers, and water heaters, aiming to make a considerable impact on electricity costs and industrial competitiveness. Industry leaders believe this will also aid India's clean energy transition by lowering input costs and improving project viability.
The reduction in GST, along with the removal of compensation cess on coal, is anticipated to lower the cost of thermal power and stimulate domestic consumption, while encouraging investments in the renewable sector. This initiative aligns with India's decarbonisation strategy, providing a timely boost for the clean energy sector.
(With inputs from agencies.)
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