What is the Correct GST Rate For Renewable Energy Devices 12% or 5%?

GST rate for renewable energy like solar panels.

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Quick Summary
There's been some confusion regarding the correct Goods and Services Tax (GST) rate for renewable energy devices in India. While some believed it to be 5%, recent government notifications and statements from the Minister of State for Finance indicate that renewable energy devices, including solar panels and windmill parts, are subject to a 12% GST rate. This change was effective from October 1, 2021, so it's important to be aware of the current applicable tax.

The GST rate for solar panels and other renewable energy equipment in India is 5%. This rate is applicable to the sup;p;ly of solar panels,,inverters, and other euipment used for generatng renewabe energy. However, it may be change, and it's always a good idia to see the GST website for current status of rates.

But sir,

In the recent Parliament session, the Minister of State for Finance, Shri Pankaj Chaudhary said that -

Renewable energy devices such as solar panels and windmill parts attract 12% GST, not 5%.

 

 

 

5% GST - some businesses and individuals had assumed but this not correct.

renewable energy devices like solar panels, biogas plants, and windmill parts are charged with a 12% tax, Not 5%

The correct GST rate for renewable energy devices in India is 12%, as per latest government notifications effective from October 1, 2021.


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