Budget 2024-25 eyes GST reforms, boost for renewable energy
New Delhi: In the upcoming Union Budget for fiscal year 2024-25, set to be presented by Finance Minister Nirmala Sitharaman on July 23, the power sector may see pivotal changes, including the potential inclusion under the Goods and Services Tax (GST). The National Solar Energy Federation of India (NSEFI) has put forward a series of proposals aimed at reducing costs and fostering growth within the sector.
Currently, the power sector is not covered under GST, which was implemented on July 1, 2017. This exemption has led to an increased tariff burden due to the cascading effect of indirect taxes. NSEFI's proposal for GST inclusion seeks to streamline taxations and lower the cost for consumers and businesses alike.
Further recommendations by NSEFI include maintaining the exemption from basic customs duty on imports of key renewable energy components such as wafer, ingots, and polysilicon. This move is intended to bolster the domestic manufacturing of renewable energy infrastructure.
Another significant aspect of NSEFI’s proposals is the removal of electricity duty (ED) and cross-subsidy surcharge (CSS) on power used in charging Energy Storage Systems (ESS). This measure is expected to encourage the use of energy storage technologies, critical for balancing the intermittency of renewable energy sources.
