56th Meeting of GST Council has approved a reduction in the tax rate for various renewable energy products, lowering it from 12% to 5%. This change applies to a range of devices, including solar cookers and solar water heater systems. It also covers a broader category of renewable energy devices and their parts, such as bio-gas plants, solar power generators, wind mills, and waste-to-energy plants. Additionally, the new 5% rate will apply to photovoltaic cells and solar lanterns. The tax reduction also extends to fuel cell motor vehicles, including hydrogen-powered vehicles. These rate adjustments are intended to make renewable energy devices more accessible and promote the use of cleaner energy technologies.
RENEWABLE ENERGY
(12% to 5%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods |
|
|
7321 or 8516 | Solar cookers |
|
|
8419 12 | Solar water heater and system |
|
|
84, 85 or 94 | Following renewable energy devices and parts for their manufacture:-
(a) Bio-gas plant; (b) Solar power-based devices; (c) Solar power generator; (d) Wind mills, Wind Operated Electricity Generator (WOEG); (e) Waste to energy plants / devices; (f) Solar lantern / solar lamp; (g) Ocean waves/tidal waves energy devices/plants; (h) Photo voltaic cells, whether or not assembled in modules or made up into panels.
|
| 4 | 87 | Fuel Cell Motor Vehicles including hydrogen vehicles based on fuel cell technology |
Note: The recommendations of the GST Council have been presented in this article containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law. The author is not promoting or confirms or guarantee the final decision of the government to implement these recommendations and same shouldn’t be a cause of action against author to held responsible for any loss by using this information.
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