Explained: GST on Solar Rooftop Projects in India
As the government lowers the GST on cells, solar power will become more affordable.The GST rate for solar cells will drop from 12% to 5%. The Finance Ministry lowered the customs duty on solar cells and modules from 25% to 20% and the duty on solar modules from 40% to 20% in the 2025 Union Budget. The Ministry of Finance has lowered the goods and services tax (GST) on solar cells, wind energy generators, and biogas plants from 12% to 5%, which will significantly boost the production of renewable energy components. For more info: https://www.renovapulseenergy.com At the 56th meeting of the GST Council, the lower GST rates were declared.The development of solar projects will be approximately 5% less expensive thanks to the GST reduction. Significant reductions in solar tariffs are also possible.A 5% GST will now apply to solar cells, regardless of whether they are put together into modules. Solar lanterns and lamps, solar cookers, and solar water heaters and systems will all be ...