Renewable power companies have moved the Delhi High Court, seeking to exempt the renewable energy certificates (RECs) from the goods and services tax (GST). The case will also have implications on priority sector lending certificates, used widely in the banking sector. These certificates current attract a GST rate of 12 per cent.
The court on Tuesday issued notices to the Centre, the GST Council and the Central Board of Indirect Taxes and Customs in this regard.
Explaining the case, Abhishek Rastogi, partner at Khaitan & Co. and counsel for the companies, said securities are defined as neither goods nor services under GST laws and hence are not taxable under the indirect tax regime. Read More