GST hike from 5% per 12% to make solar projects unviable, say industry players

The GST fitment committee’s recommendation to raise the tax on solar modules from 5% to 12% has sent shockwaves across the renewable energy industry, as companies are worried that it would make a lot of projects unviable.

Currently, the GST rate on all solar panels is 5%. This was decided when the indirect tax system was overhauled in 2017.