GST Rejig
Investors to save up to INR 1.5 tln in renewables - Minister Joshi
This story was originally published at 15:51 IST on 22 September 2025
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NEW DELHI – Reduction in goods and service tax on renewable energy will save INR 1.0 trillion-INR 1.5 trillion for investors in the sector till 2030, Union Minister Pralhad Joshi said at a Confederation of Indian Industries event here Monday. The comments came on the first day of implementation of the GST rate reduction. GST on renewable equipment has been cut to 5% from earlier 18%.
On Sept. 3, the GST Council overhauled the indirect tax regime by collapsing the four-slab structure of 5%, 12%, 18%, and 28% to a two-slab structure of 5% and 18%. The Council also introduced a new GST rate of 40% on sin and luxury goods. In a press conference after the GST Council meeting, Finance Minister Nirmala Sitharaman said all the new rates, except for those on tobacco products, will take effect from Monday.
Addressing the conference, Joshi said at the COP26 in 2021, when Prime Minister Narendra Modi first laid down the roadmap for the country's clean energy journey, he set a target that many thought was impossible - 500 gigawatts of non-fossil fuel capacity by 2030. "Today, I am proud to say that we have already achieved over 50% of our installed power capacity from non-fossil fuel sources, and have done it five years ahead of the timeline. We have also crossed 50% of the 500 gigawatt target," he said.
The minister said nearly 2 million homes have benefited from solar power under the PM Surya Ghar-Muft Bijli Yojana. The scheme provides a subsidy of 60% of the solar unit cost for systems up to 2 kilowatts capacity and 40?ditional cost for systems between 2 and 3 kilowatts capacity. The subsidy has been capped at a capacity of 3 kilowatts. End
Reported by Pallavi Singhal
Edited by Tanima Banerjee
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