Apex industry body ASSOCHAM has urged the Centre to fix Goods and Services Tax (GST) rates for hydropower at par with wind and solar so that value added cost and tax are commensurate for all renewable power projects.
Hydro projects attract 18 per cent GST for equipment and 28 per cent for cement while the same for solar is made five per cent Engineering, Procurement and Construction (EPC) which has a glaring additional cost impact on power produced from hydro projects, noted an ASSOCHAM paper titled ‘Need for Hydropower in India – Industry Submission.’
It also said that EPC contracts for hydro should also be categorised under five per cent GST.
Currently, electricity at the consumer end or at discom end does not attract any GST and therefore the last leg of consumption of GST is with the generator Read More…
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