NSEFI Writes To Fin Min For GST Concessions On Green Technologies

Leading solar body NSEFI (National Solar Energy Federation of India) has pitched to Finance Minister Nirmala Sitharaman, asking for concessional GST and custom duties on emerging technologies and goods essential to encouraging the green transition.

“As emerging technologies require time and scale to reach price parity with existing carbon-based energy systems, concessional GST & Custom Duties on Capital Goods and associated CAPEX are essential to  encourage the early adoption of such technologies.

It is to be noted that the support was provided to Wind & Solar Technologies from ~2008 onwards to encourage development of Renewable Energy capacities in the erstwhile indirect taxes regime through exemptions, concessions and refunds by both Government of India and respective State Government’s in Customs Duty, Excise Duty, CST and VAT and subsequently in the GST regime.

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Similar concessional GST & Customs Duties support for key Energy Transition Technologies, Projects and associated Balance of Plant (BOP), Capital Goods and overall CAPEX are also required to be extended. Such Key Energy Transition Technologies are as under:

1. Battery Energy Storage Systems (BESS).
2. Hydro Pumped Energy Storage Systems (PSP).
3. Green Hydrogen Manufacturing, Storage & Transport Systems – Electrolysers.
4. Green Ammonia Manufacturing, Storage & Transport Systems.
5. Green Urea Manufacturing, Storage & Transport Systems.
6. Other Green Molecules substituting carbon based Industrial Intermediary Chemicals.
7. Electrical Vehicle Charging System’s and Infrastructure.
8. Carbon Sequestration and Storage Technologies & Systems.
9. Green Algae based Alternate Energy Systems.

The latter adds that NSEFI request to amend the relevant Customs and GST Notifications to incorporate such key Energy Transition
Technologies as under:

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At a time of a strong recovery in GST collections, with April seeing  a record Rs 1.70 lac crore in collections, the NSEFI probably feels it is a good time to make the case for green technologies yet again to use the fiscal space available with the government. But with GST decisions dependent on the GST council made up of all state representatives also, it will probably take time, unless the NSEFI finds a way to lobby key state FM’s effectively soon.

The picture is also muddied by existing schemes targeted at various aspects NSEFI has highlighted, be it battery manufacturing, a national green hydrogen mission or even EV charging infrastructure covered under FAME 2.