Sales tax rate for solar power plants

Are solar power generators taxable?

Goods specified under Schedule I of the said notification are taxable at the rate of 5% (i.e., 2.5% CGST + 2.5% SGST, or 5% IGST). Entry serial number 437 of said schedule specify the rate on the supply of Solar Power generators, accordingly the said supply of leviable to GST at the rate of 5%.

Are solar power generating systems taxable under GST?

Solar power generating systems and related renewable energy devices are taxable at 5% GST under Notification No. 9/2025–Central Tax (Rate). Where such goods are supplied along with construction, engineering, installation or other technical services for setting up a solar power system, a specific deemed valuation mechanism applies.

What is the GST rate on solar power?

With the increase in GST from 5% to 12% on renewable energy equipment, at the project level, the new effective rate of GST on wind and solar power comes to around 13.8%. The confusion is around the use of the word 'solar power generating systems,' which was all-encompassing and included solar power projects.

Are solar panels taxed?

Solar structure: They are not solar power-based or solar power-based devices. Thus, solar structures are taxed at 18% GST. Solar panels: They are made of solar cells and are connected in series. They are made of semiconductor material that converts sunlight into electrical energy.