The effective rate of Indian goods and services tax (GST) under current recommendations would be 8.9%, compared to a rate of just 1.5-2% before GST was introduced, according to the Solar Power Developers Association (SPDA). The group has written to finance minister Arun Jaitley warning the GST proposals would increase electricity costs for many projects, as developers would want compensation of 9% from respective commissions, rather than 5%, raising tax costs for distribution companies and making future solar projects more expensive. In a 31st letter, SPDA claimed it is unfair for solar firms to pay GST on safeguard duty.
The effective rate of Indian goods and services tax (GST) under current recommendations would be 8.9%, compared to a rate of just 1.5-2% before GST was introduced, according to the Solar Power Developers Association (SPDA). The group has written to finance minister Arun Jaitley warning the GST proposals would increase electricity costs for many projects, as developers would want compensation of 9% from respective commissions, rather than 5%, raising tax costs for distribution companies and making future solar projects more expensive. In a second letter, SPDA claimed it is unfair for solar firms to pay GST on safeguard duty.