Amid reports that there is still lack of clearness on the 5 percent goods and services tax (GST) levy on equipment required for generating solar power, Union power and renewable energy minister Piyush Goyal has reiterated that there is no question of ambiguity as the government is very clear on the issue. He also noted that it has been made very clear that 5 percent GST will be applicable on solar panel equipment.
The industry has claimed that though the government said GST would be applied to solar modules at a concessional rate of 5 percent, there is still no clarity on whether it will be extended to other equipment as well. The minister has said that the GST regime was introduced to bring in more clarity and transparency and avoids double taxation in the system. He also said “I think our stand is very clear in this.”
Goyal further said that the ambitious plan of increasing solar capacity to 100GW by 2022 and promoting solar energy products would boost small and medium-sized enterprises (SMEs). He also said that they have set a target of 40,000 MW of rooftop solar capacity by 2022 and SMEs can take active participation in this. Apart from this, the minister mentioned that there is scope in sectors like solar pumps, solar streetlights and energy-efficient systems among others. He also observed that India is moving from a job-seeking to job-creating economy.