India Slashes GST Rates to Boost Clean Energy Adoption
In a significant move to promote renewable energy, India has reduced the GST on clean energy devices and components from 12% to 5%. This reduction is expected to lower project costs, spur demand, and aid in achieving national renewable energy goals by 2030, while attracting investment into the sector.
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In a strategic move to enhance renewable energy adoption, India's GST Council has slashed the Goods and Services Tax on green energy devices from 12% to 5% as part of its 56th meeting decisions. The lowered tax rate aims to make clean energy installations more affordable and accelerate the national transition towards sustainable power sources.
The revised GST applies to various green technologies including fuel cell motor vehicles, solar equipment, and wind energy devices. Industry leaders such as Amit Paithankar of Waaree Energies and Rohit Chandra of OMC Power report that this measure will significantly cut project costs and boost capacity additions.
Analysts and business executives view this tax reform as a positive step for investors and developers alike. The move is anticipated to make renewable energy projects more financially viable, drawing in increased private sector participation and helping India inch closer to its ambitious 2030 renewable energy targets.
(With inputs from agencies.)
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