MoP seeks relief for renewable energy under GST

The Ministry of Power (MoP) has requested the central government to exclude renewable energy from the ambit of the proposed goods and services tax (GST) as the application of GST in its current form can considerably increase generation costs of renewable power and stress discoms financially. The cost increase is accounted for by the fact that while solar panels and other equipment will be covered under GST, electricity will not. Power producers will thus be unable to offset part of their indirect tax liability on the power produced by using credit for taxes already paid on raw materials and other services.

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