GST shadow over solar pump scheme, target likely to be missed

Differential GST rates levied by various states have lately led to an escalation in the cost of solar pumps

KUSUM, the scheme for providing solar-run irrigation pumps to farmers, is facing confusion and delay on account of the new goods and services tax (GST) regime.

Because of lack of clarity on the GST rate on solar-run systems, coupled with increasing cost, it is feared that farmers will be wary of adopting cleaner irrigation systems.

KUSUM, the acronym of Kisan Urja Suraksha Evam Utthaan Mahaabhiyan, announced in the Budget this year, found mention in Prime Minister Narendra Modi’s Independence Day speech. He said the scheme would help farmers save fuel and earn money. 

“We have rolled out the solar farming scheme. Farmers can