Higher GST on RE devices and parts
- October 2, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
Higher GST on RE devices and parts
Subject – Economy
Context – FinMin announces higher GST on RE devices and parts
Concept –
- The Finance Ministry has notified 12 per cent rate of goods & services tax (GST) on solar photo-voltaic (PV) module and other renewal energy (RE) equipment with effect from Friday.
- The notification also prescribes 18 per cent GST rate for 10 types of minerals ores and concentrate.
- All these are follow-ups to recommendations by the GST Council and aims to end the anomaly of inverted duty structure.
- According to the notification, renewable energy devices and parts for their manufacture such as bio-gas plants, solar power based devices, solar power generator, wind mills, wind operated electricity generator (WOEG), waste to energy plants and devices, solar lanterns and solar lamps, ocean waves/tidal wave energy devices and plants, and photo voltaic cells, whether or not assembled in modules or made up into panels, will attract GST at the rate of 12 per cent against 5 per cent.
- It has also been clarified that the existing regime of 70:30 ratio will continue. Under the existing regime, 70 per cent of the gross value of the contract was considered for the supply of goods, attracting a 5 per cent rate – which will now be 12 per cent.
To know about Inverted Duty Structure, please click here.