There is so many rumors are hearing about GST. GST may cause fluctuations in the price of solar energy products. But the government says that the new taxation will not have a greater impact on solar energy products. “Following GST, solar projects will be about 18% costlier on an average, while the cost of generation would go up by around 20%. We have estimated the incidence of GST to be around 23%-25% on various inputs for the segment,” said Ratul Puri, chairman, Hindustan Power Projects.
“It would require project developers to go back to banks for additional funding for projects under construction. It might require a minimum of three months to get additional funding, thus delaying projects.” The new & renewable energy minister Piyush Goyal already stated that there will be zero impact of this new tax change.
“Our calculation suggests that project costs would go up by at least 16% on an average since electricity has been excluded from GST and thus would not qualify for input tax credit. This translates into a 40-50 paise per unit rise in generation costs,” Sunil Jain (CEO at hero Future Energies) said. “The new regime will result in an increase of 18% in module cost, about 12% of inverter cost and 3% in all service costs – increasing overall project cost by about 12%,” said Vinay Rustagi, managing director, Bridge to India, a consulting firm. “New rates would hit more than 10 GW of ongoing utility scale projects and pose a threat to their viability.”
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