Gst On Solar Panels In India

A gst rate for solar inverters in india is 5 and the applicable hs code is 85044090.

Gst on solar panels in india.

The country s solar installed capacity reached 30 071 gw as of 31 july 2019. The gst council issued clarity on the confusion over the rates for solar power projects. However it can be sold as a part of a solar power plant at 5 gst. The applicable hs code will be 73089090.

It is combined with inverters for generating electricity to make usage in homes and offices. A gst rate for solar module mounting structure will be 18 when being bought from a fabricator by an epc company. India has the lowest capital cost per mw globally to install the solar power plants. 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.

See solar inverter brands sold by loop solar. 11 2017 central tax rate dated 28 june 2017 and shall attract 18 rate of tax under igst act or 9 each under the cgst and sgst acts aggregating to 18. Below information serves as a ready reference for the gst rates applicable along with relevant hsn codes for the solar industry in india. India is planning to achieve 20 giga watt capacity before year 2022.

Luminous solar panel 325 watt 24 volts is utilized to produce electricity from 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. Applicable gst rate on supply of solar power generating system in instant case the nature of work is of erection procurement and commissioning of solar generating system which falls under the ambit works contract services sac 9954 of notification no. Passed on 1 st july 2017 india s goods and services tax gst is an indirect tax imposed on goods and services and replaces existing state and central taxes of a similar nature.

India has installed 1 2gw for solar cells and 5 6 gw for solar modules. The goal of the gst is to simplify the indirect tax for the country as a whole. In a notification the department of revenue has said that after considering the recommendations of the commerce ministry s investigation arm dgtr. Q what is the gst rate and hs code for solar module mounting strcture in india.

The gst rate applicable on solar inverters is still under debate with some vendors invoicing at 5 gst and others at 28. India has imposed anti dumping duty of up to usd 1 559 per tonne on imports of a certain type of sheet used in solar cell making from china malaysia saudi arabia and thailand for five years to safeguard domestic players against cheap shipments. However with the introduction of gst the domestic player will able to avail benefit from the elimination of the cascading effect of different taxes across the entire value chain of manufacturing production of solar modules.