27 September 2023
Solar structures are taxed at 18% GST. Solar panels: They are made of solar cells and are connected in series. They are made of semiconductor material that converts sunlight into electrical energy. Thus, they are considered solar power based devices and charged at 12% GST.
Solar power generated is exempt from GST for outside sale. In this case capitalise GST and claim depreciation. For internal consumption of solar power input ITC can be claimed in case power used for taxable output.