Solar power operators in India are still uncertain about the applicable rate of goods and services tax (GST), more than a year after it was introduced. There is ongoing confusion as to whether various goods and services, especially in integrated solutions, should attract a 18% or 5% GST rate. The lack of clarity has been a drag on solar developments, with states’ commissions issuing their own interpretations, according to Mercom Capital Group CEO, Raj Prabhu. The Solar Projects Developers Association has asked for clarification from the Ministry of Finance, which is expected to raise the matter with the GST Council.
Solar power operators in India are still uncertain about the applicable rate of goods and services tax (GST), more than a year after it was introduced. There is ongoing confusion as to whether various goods and services, especially in integrated solutions, should attract a 5% or 18% GST rate. The lack of clarity has been a drag on solar developments, with states’ commissions issuing their own interpretations, according to Mercom Capital Group CEO, Raj Prabhu. The Solar Projects Developers Association has asked for clarification from the Ministry of Finance, which is expected to raise the matter with the GST Council.