In Short : In an effort to speed up the adoption of clean energy and lower project costs for solar, wind, and other green technologies, the GST Council approved a 5% tax rate decrease on renewable energy equipment.
Encouraging Innovation and Strategic Growth
Reducing the GST on renewable technology will increase project viability, lower capital costs for developers, and lower the cost of clean energy for consumers. It is anticipated that this legislative boost will spur innovation in wind turbines, solar panels, and storage technologies.
Impact and Significance of Clean Energy
The tax cut will encourage new investments, accelerate India’s installation of renewable power, and help the country reach its ambitious 500 GW objective by 2030 by lowering upfront costs. Additionally, it will support MSMEs’ and small businesses’ active involvement in the renewable energy transition.
Concerning GST Reform in Renewable Energy
Renewable energy technology, which was previously subject to higher tax rates, had to deal with increased project costs and funding obstacles. The 5% GST slab supports India’s policy goal of lowering the cost of clean energy while bolstering the environment for long-term, sustainable growth.
