In Short ; By lowering the Goods and Services Tax (GST) on renewable energy equipment to 5%, the GST Council has announced a significant adjustment. It is anticipated that this action will speed India’s shift to sustainable energy, reduce project costs, and slash tariffs.
Encouraging Innovation and Strategic Growth
The tax cut improves the investment climate and promotes widespread use of renewable energy by reducing the financial burden on solar and wind developers. Additionally, the change is anticipated to promote local manufacturing, clean technology innovation, and accelerated implementation of decentralized green power solutions.
Impact and Significance of Clean Energy
Consumers may get clean power at a lower cost thanks to renewable energy installations. In addition to lowering reliance on fossil fuels and improving energy security, the decision will assist India in reaching its 2030 objective of 500 GW of renewable energy.
About the GST Council
The Union Finance Minister chairs the GST Council, which is India’s highest decision-making body for indirect taxes and is made up of state finance ministers. By influencing cost dynamics and market competitiveness, its policy changes have a direct impact on industries like renewable energy.
