The GST Council has decided to slash the goods and services tax (GST) on renewable energy devices and parts for their manufacture. The tax has been reduced from 12 per cent to 5 per cent. The equipment that will enjoy the lower tax rates includes bio gas plant, solar power-based devices, solar power generator, solar lantern / solar lamp. Lower tax rates will also be levied on photovoltaic cells, whether or not assembled in modules or made up into panels.
Furthermore, other items on which a lower tax rate of 5 per cent will be applicable are windmills, wind-operated electricity generators, waste-to-energy plants or devices, ocean waves/tidal waves energy plants or devices. Additionally, the objective of the reforms is to promote renewable energy goods in the country.
