The government of India has decided to roll-out Goods and Service Tax (GST) rates by 1 July 2017. The GST Council has released the rates and grouped the products/goods in five different tax brackets (0%, 5%, 12%, 18%, and 28%). As per the GST rate schedule released, renewable energy devices & spare parts used for their manufacture will be taxed at 5%.
Further in the description part of the rate schedule, it also says that solar power based devices and solar power generating systems will also fall under the 5% tax bracket. There has been a clarification provided by the GST Council that Solar panels will fall under the 5% tax bracket, bringing big relief to both developers and suppliers, since earlier drafts included solar panels under the 18% tax bracket.
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