BUSINESS
A consultative meeting will be held with CBIC within the next four weeks for the solar power producers to put forward their grievances
Solar power developers are hopeful of relief in GST rates after the Delhi High Court's order directing authorities to redress their grievances.
The court last week directed Central Board of Indirect Taxes and Customs (CBIC), Ministry of New & Renewable Energy and GST Council to look into their concerns.
As per the court order, on a petition being filed by the Solar Power Developers Association (SPDA), a consultative meeting will be held with CBIC within the next four weeks for the solar power producers to put forward their grievances. Ministry of New & Renewable Energy may also take part in the meeting.
Post the deliberations, a report will be placed before GST Council for consideration upon those points.
Currently, solar power producers are subject to GST in the ratio of 70:30, that is 70% is considered as goods and attracts 5% tax rate, while 30% is accounted as services, which is taxed at 18%. Hence, the effective tax rate works out to be 8.9%.
An SPDA spokesperson said, "We are thankful to GST Council for bringing necessary clarity on the taxability of various types of contracts for supply of goods and services in the solar power generating system. But with the 70:30 ratio of supply of good and services, the industry is ending up paying a higher effective tax rate of 8.9%, which is impacting the financial viability of solar projects. We welcome the decision of Hon'ble High Court of Delhi and as directed, we shall bring relevant facts and figures to the table before CBIC and hope to reach an amicable and fair settlement on the issue."
Abhishek Jain, tax partner, EY India, said, "The direction by the court in this ruling is quite an unconventional one. Various players in the solar industry had concerns on the deemed proportion of services, as the services component in setting up projects was significantly lower than 30%. The directed deliberation with the Board does create a ray of hope for further relief for this industry."
Though there is a silver lining for the solar industry, the delay in getting clarity and resolving the issue is a let down.
"It is unfortunate that after almost two years since GST was introduced the solar industry is still searching for clarity about the tax rate. The confusion in implementing GST, and reimbursement delays have contributed significantly to the slowdown in installations over the past two years," said Raj Prabhu, CEO, Mercom Capital Group, in a statement.
Maharashtra polls: Congress suspends seven more rebel candidates
Meet man who quit high-paying job in US, then built Rs 150 crore company in India, his business is…
Viral video: Little girl wins heart with adorable dance to 'aayi nai' song, watch
Queen Elizabeth's 1947 wedding cake slice sold in auction at this SHOCKING price
Viral video: Woman's sizzling dance to 'tere liye' leaves internet drooling, watch
Meet man who leads Rs 185985 crore company as CEO, son of Indian billionaire, he is...
'We don't encourage...': Zomato CEO Deepinder Goyal launches new feature 'Food Rescue' to reduce...
Before Pakistani TikTok star Minahil Malik, actress Rida Isfahani's MMS video leaked online by...
Watch: Virat Kohli gets annoyed at Mumbai airport, asks paps to stay away from…
Watch: David Miller's spectacular one-handed catch shocks Tilak Varma in IND vs SA 2nd T20I
Do you see 11:11? What's the secret behind this number?
'Najar Na Lage': Sidhu Moosewala’s parents perform annaprashan ceremony for chota Sidhu, watch
Baba Siddique murder case: Main shooter, 4 others arrested in UP
Justice Sanjiv Khanna to be sworn in as 51st Chief Justice of India tomorrow
Delhi Pollution: Air quality remains in 'very poor' zone, AQI reaches over 330
'Fictosexual': Japanese man celebrates six years of marriage with his virtual wife
J-K: Army officer martyred, 3 soldiers injured in gunfight with terrorists in Kishtwar
This is world's richest politician, much wealthier than Mukesh Ambani, Gautam Adani, he is...
Want a bride-like glow? Try Deepika Padukone’s secret juice for perfect glow
Meet Robin Passi, billionaire heir and son of Fabulous Lives Vs Bollywood Wives fame Shalini Passi
Tulsi Vivah 2024 Time: Date, shubh muhurat, rituals and significance
MrBeast, Logan Paul ride rickshaw in Mumbai, distribute chocolates to paparazzi; WATCH viral video
Azim Premji buys stakes worth Rs 4757 crore in Rs 297000 crore company
'This is just exploitation...': Video of woman sleeping with lion cubs goes viral, watch
Rihanna retiring from music? Singer says 'God had other plans', leaves fans worried
India's first high-speed railway test track worth Rs 820 crore getting constructed in...
Mukesh Ambani loses Rs 74563 crore in 5 days, Reliance emerges as biggest...
Congress veteran leader, 5 times MLA Mateen Ahmed joins AAP ahead of 2025 Delhi Assembly polls
AUS vs PAK: Pakistan script history in Perth, win ODI series on Australian soil after 22 years
'Ask Rahul Gandhi to praise Savarkar, Balasaheb...': Amit Shah's fierce attack on Uddhav Thackeray
Hidden danger in your spice rack: Turmeric's lead contamination crisis
Dev Uthani Ekadashi 2024: When is Devutthana Prabodhini Ekadashi vrat? Know date and significance
J-K: Fresh encounter breaks out in Kishtwar between security forces, terrorists
No water supply for 16 hours on November 11 in THIS part of Delhi, check details
Viral video: Man finds live worm in pizza ordered online, furious netizens demand action, WATCH
How many meals in a day is healthy for Indians?
New health directive in Tamil Nadu, Government declares THIS as notifiable disease
How Indian airports are becoming hubs for drug-trafficking?
Maharashtra Assembly Elections 2024: Union Home Minister Amit Shah releases BJP manifesto
J-K: Exchange of fire between terrorists, security forces in forest area of Srinagar
'These kids will regret': Kartik Aaryan fans IGNORE Sonu Nigam, viral video leaves netizens angry
Liam Payne's death 'NOT' suicide: Autopsy reveals One Direction singer died due to...
Delhi Ganesh, Kamal Haasan’s Indian 2 co-star, passes away
Why paper cuts hurt so much: Surprising science explained
Donald Trump marks second term victory with formation of inaugural committee for 2025
Citadel Honey Bunny review: Varun Dhawan, Samantha try powering this dull series
Meet Malaysia's richest Indian, owns private satellites, his net worth is Rs...
Delhi-NCR update: AQI improves slightly but remains in 'very poor' category
Meet woman who was first DSP, cracked UPSC exam to become collector, was jailed due to...
SA vs IND, 2nd T20I: Predicted playing XIs, live streaming details, weather and pitch report