Govt clarifies GST confusion on solar, 70% project cost under 5% rate

Govt clarified saying that 70% of the gross value of project shall be deemed as the value of supply of said goods attracting 5% rate

The GST council issued clarity on the confusion over the rates for solar power projects. While solar panels were classified under 5 per cent tax slab, industry had contested saying other equipments such as metals, electrical material etc are under different and higher tax slabs which would increase the cost of power project. 

The Council on Saturday said certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant. 

It, therefore, said, "70 per cent of the gross value of project shall be deemed