No review of 5% GST on solar equipment, govt's position clear: Piyush Goyal

Industry says no clarity on whether 5% GST on modules will be extended to other equipment as well

Amid reports that there is still lack of clarity on the 5 per cent goods and services tax (GST) levy on solar equipment, Union Power Minister Piyush Goyal has reiterated that there is no ambiguity as the government is very clear on the issue.

"There is no question of ambiguity on this. It has been made very clear that 5 per cent GST will be applicable on solar equipment. If they (equipment makers) still have issues with it, it is very sad and we cannot do anything," Goyal, who was in the megapolis, told PTI over the weekend.

The industry has claimed that though the government has said GST would be applied to solar modules at a concessional rate of 5 per cent, there is still no clarity on whether it will be extended to other equipment as well.

"The Goods and Services Tax was introduced to bring in more clarity and transparency in the system. I think our stand is very clear in this," he said.

Goyal further said the ambitious plan of increasing solar capacity to 100 GW by 2020 and promoting solar products would boost small and medium enterprises.

"We have set a target of 40,000 MW of rooftop solar capacity by 2022. Small and medium enterprises can take active participation in this. Apart from this, there is scope in sectors like solar pumps, solar streetlights and energy- efficient systems among others," the minister said, adding "the country is moving from a job-seeking to job-creating economy".