Gst On Installation Of Solar Panels

If the rooftop solar systems which includes solar panels come under 5 gst across india as it seems from the paper published by the gst council then it is a big step forward and the residential commercial and industrial consumers should take up this opportunity to go solar with a uniform tax rate.

Gst on installation of solar panels.

The info sheet discusses gst hst registration requirements and a person s eligibility to recover the gst hst paid or payable on the acquisition of a solar panel system where all of the electricity produced by the system is sold to the ontario power authority or its designate. While solar panels were classified under 5 per cent tax slab industry had contested saying other equipments such as metals electrical material etc are under different and higher tax slabs which would increase the cost of power project. Gst on solar power generating plant and other renewable energy plants gst rate of 5 rate has been prescribed on renewable energy devices parts for their manufacture bio gas plant solar power based devices solar power generating system sgps etc falling under chapter 84 85 or 94 of the tariff other goods or services used in these. The total incidence of tax on the spgs would increase to 8 9 per cent with implementation of the gst.

A the applicable gst rate for supply of equipment for a solar power plant will be 5 equivalent to 70 of the plant cost. However for installation and engineering services epc companies and installers will need to raise a separate works contract equivalent to 30 of the overall bill with a gst rate of 18.