GST Reduction on Renewable Energy Equipment

planned

The proposed reduction of GST on renewable energy devices and equipment to a uniform 5% from 12% is expected to lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets. This reduction is anticipated to reduce capital costs for solar and wind power projects by approximately 5%, leading to lower tariffs and improved project viability, which may accelerate the signing of power purchase agreements (PPAs).