Historic GST Overhaul Fuels India's Clean Energy Drive

Union Environment Minister Bhupender Yadav hailed the government's recent overhaul of the Goods and Services Tax (GST) as a 'historic Diwali gift,' claiming it will bolster India's shift towards clean energy.

Yadav took to the social media platform X to underscore that the GST rationalisation solidifies renewable energy as the cornerstone of India's climate strategy. He labelled the reforms as 'GST Reforms for a Green India,' highlighting their potential impact on promoting clean power, enhancing waste management systems, reducing emissions, and safeguarding ecosystems, all while maintaining fiscal prudence.

The refurbishment of GST rates, announced on Wednesday, reduces taxes on solar panels, wind turbines, and related devices, aiming to cut project costs and foster domestic manufacturing. The reforms also lower GST rates on effluent treatment services to enhance waste management, significantly cut taxes on biodegradable bags to battle single-use plastics, and reduce GST on buses and commercial vehicles to stimulate public transport and fleet renewal.

(With inputs from agencies.)