Gst On Installation Of Solar Panels

The gst council issued clarity on the confusion over the rates for solar power projects.

Gst on installation of solar panels.

A the applicable gst rate for supply of equipment for a solar power plant will be 5 equivalent to 70 of the plant cost. However for installation and engineering services epc companies and installers will need to raise a separate works contract equivalent to 30 of the overall bill with a gst rate of 18. 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. 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.

This info sheet provides details on the gst hst entitlements and obligations of a participant in the microfit program. The solar power developer association spda has demanded the goods and services tax rate be kept uniform at 5 per cent on solar power generating system spgs saying recent recommendations of the gst council are inconsistent with the government s policy of promoting clean energy.