India's solar industry has been dealt a blow by the Maharashtra state appellate authority's decision to subject the sector to an 18% goods and services tax (GST) rather than the 5% sought by developers. The move follows a similar GST ruling in Rajasthan and the Indian Supreme Court's decision to uphold a national 25% levy on some imported solar technology. In its ruling, the court said that while it was not possible for developers to avoid paying taxes under this scheme, they could at least pay them more efficiently through better use of their own resources.
India's solar industry has been dealt a blow by the Maharashtra state appellate authority's decision to subject the sector to an 18% goods and services tax (GST) rather than the 5% sought by developers. The move follows a similar GST ruling in Rajasthan and the Indian Supreme Court's decision to uphold a national 25% levy on some imported solar technology. The Maharashtra judgement said developers that employ third parties to supply panels and set-up projects are receiving a service, and therefore must pay the higher rate of GST.