Government announces GST rates for renewables

The government has announced the final rates under the goods and services tax regime, which will come into effect on July 1, 2017. Under the new regime, all renewable energy devices and their spare parts have been listed under the 5 per cent tax rate category. According to industry reports, currently, the tax on solar energy devices does not exceed 1.5 per cent, implying that the new regime may have a negative impact on solar power costs.