Discoms in line for Rs 3,000 crore power boost from green energy GST cut

The cut in goods and services tax (GST) on the renewable energy value chain from 12% to 5% is expected to lower annual power procurement costs for distribution companies by nearly Rs 3,000 crore. The move aims to address the growing financial strain on utilities while accelerating the adoption of green energy across the country.

Although consumers may not see an immediate reduction in electricity tariffs, the measure is expected to reduce the gap between what discoms spend on power and what they recover from customers, The Times of India reported on September 18.