A lack of clarity around India’s recently enforced Goods and Services Tax (GST) Bill has caused a PV tender delay in the state of Gujarat and prompted the nation’s energy storage alliance to write a letter of appeal to the government.
India’s Goods and Services Tax (GST) Bill was enforced on 1 July bringing in a 5% tax on solar PV modules, but there is still uncertainty around taxes on other solar equipment, according to consultancy firm Bridge to India.
After announcements that India will hit solar cells and modules with an 18% tax under the new Goods and Services Tax (GST) Bill, some confusion has arisen about what level the tax will actually be set at.
India’s solar manufacturers have said that roughly 2.25GW of module manufacturing capacity that was previously reported as functional is either obsolete or too old to be counted as operational, according to consultancy firm Mercom Capital Group.
Plenty of uncertainty surrounds the potential effects of India’s forthcoming Goods and Services Tax (GST) Bill, but the cost of solar could go up by as much as INR4.5 million/MW (US$67,000), according to a new study from the Council on Energy, Environment and Water (CEEW).