How Narendra Modi’s Biggest Tax Reform GST Is Hurting His Own Solar Power Dream


How Narendra Modi’s Biggest Tax Reform GST Is Hurting His Own Solar Power Dream

With an aim to light up the country with solar power, Narendra Modi-led government plans to achieve the target of 175 GW of installed renewable energy capacities by 2022. However, the road ahead doesn’t appear to be trouble-free for the government’s pet National Solar Mission (NSM) especially after the implementation of goods and services tax (GST) and possibility of anti-dumping duty. “As India focusses on installation of 175 Gigawatt of renewable energy by 2022, power purchase cost is expected to rise as solar modules becomes costlier following the levy of Goods and Services Tax, customs duty and potential levy of anti-dumping duty,” CRISIL report said.

GST

The solar modules have become costlier after the introduction of GST. The government levies a 5 percent tax on all equipment needed for generating solar power compared with nil duty now. Read More…

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