NEW DELHI, Nov 30: Industry body ASSOCHAM has urged the Centre to fix Goods and Services Tax (GST) rates for hydropower at par with wind and solar power so that value added cost and tax are commensurate for all renewable power projects.
“Hydro projects attract 18 per cent GST for equipment and 28 per cent for cement while the same for solar is made five per cent Engineering, Procurement and Construction (EPC) which has a glaring additional cost impact on power produced from hydro projects,” an ASSOCHAM paper said.
It also said that EPC contracts for hydro should also be categorised under five per cent GST. Currently, electricity at the consumer end or at Discom end does not attract any GST and therefore the last leg of consumption of GST is with the generator. The paper was released by Union Power Minister, Mr RK Singh at an ‘ASSOCHAM Round Table Discussion on Hydro Power in India,’ here on Wednesday.
Assuring the hydro power industry representatives of looking into the various issues and demands for development of the sector, Mr Singh also informed that Centre’s hydro policy was in final stages which would be sent for Cabinet approval within a fortnight. (UNI)
Follow our WhatsApp channel