Rajasthan '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 Maharashtra decision to uphold a national the 5% levy on some imported solar technology. The 15% service tax was typically applicable on only around 10% of a project’s The the Indian Supreme Court's 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.
Rajasthan '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 Maharashtra decision to uphold a national the 5% levy on some imported solar technology. The the Indian Supreme Court's 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.