Solar equipment manufacturers have expressed concern over implementation of Goods and Service Tax (GST) that will possibly increase the cost of power projects and subsequently put higher tariffs burden on consumers.
Speaking to PTI Surender Pal Singh, Chairman, Solar Energy Equipment Manufacturers’ Association of Telangana said “Currently the sector enjoys almost zero tax structure in most of the states with VAT reimbursement by the state governments and other tax relaxation on solar power plants.” He added “Once GST comes into the picture, if Indian manufacturers are subjected to that, then we will be in great disadvantageous position when compared to China and Taiwan. That would subsequently escalate the cost of the project by 10 to 15 per cent and ultimately burden the consumers.”
The All India Solar Manufacturers’ Association has already submitted a memorandum to Finance and Commerce Ministers, among others, to have a soft view on the budding sector, Singh informed.
Addressing reporters here, Singh said India currently has installed capacity of solar power 8.1 GW and during the current fiscal it may go up to 15 GW including ground and rooftop. He further added that financial institutions including banks charge at par with other industries though the solar industry as classified as special category.
“The mindset of banks on solar industry is not still clear. They are still hesitant when it comes to lending,” he said.