Renewable Energy Ministry wants GST exemption and they have a solid reason

At a time when the Indian government is doing whatever possible to pass the GST bill in Rajya Sabha, the Ministry of New & Renewable Energy (MNRE) has sought exemption from it.

As per the ministry, the GST bill will shoot up the cost of setting up renewable energy systems, be it solar, wind or hydro-power projects, as much as 20%.

The renewable energy sector enjoy a slew of incentives, including 100% tax holiday on the earnings for 10 years, concessional excise and custom duties and so on and GST could increase the pricing.

The MNRE has sent its request to the revenue department.

"We are requesting an exemption. The GST bill has provisions for exemptions by state governments and we believe that renewable energy is a fit case for exemption. We are in dialogue with the Department of Revenue and they do see merit in our argument," a highly placed official from MNRE confirmed to ET.

Let's wait till Budget 2016 to see if this demand is met by the government.

Image credit: Indiatimes