(FE)
Solar thermal industry players are confident of getting back into the boom trajectory and expect the sector to clock a growth of 10% after the reduction of GST rate on inputs for solar components from 18% to 5%. When the goods and services tax (GST) was reduced earlier, the rate on inputs for solar components was fixed at 5%. However, the wording used was ‘solar power devices and components’, as a result solar thermal components that generate ‘heat’ were classified under non-power devices inviting 18% GST.
Solar Thermal Federation of India (STFI) secretary general Jaideep Malaviya said they approached GST directorate general and the finance minister and convinced them to consider solar thermal components as part of solar energy and apply 5% GST on them. “With this reduced GST, the end-product will become economical for the consumer and the market is expected to witness growth,”
