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GST Rates and HSN Codes for Rooftop Solar

This May we had published a preliminary guide on expected GST rates for the rooftop solar industry. Now that the dust has settled, the final rates are clear. Below information serves as a ready reference for the GST rates applicable along with relevant HSN codes for the solar industry in India:

Item HSN/SAC Code GST Rate Applicable
Battery 8507 28
Solar Module 8541 5
Charge Controller 8504 28
LED Lights 9405 12
Solar Lantern with Modules 8543 5
Solar Power Generating Systems 8543 5
Solar Inverter 8504 28*
Data Loggers 8517 18
GI Mounting Structure 7308 18
Al Mounting Structure 7610 18
Cables 8544 18
Erection, Installation & Comissioning Services 9954 18

*The GST rate applicable on solar inverters is still under debate with some vendors invoicing at 5% GST and others at 28%.

In addition to this, the rates applicable on the various components required in the assembly of solar panels are below:

Item HSN Code GST Rate Applicable
Tempered Glass 7007 28
EVA Backsheets 3921 18
Aluminium Frame 7604 18
Junction Box 8536 28
Solar Cells 8541 5
Solar PV Ribbon 7409 18

Hope this quick reference is helpful, do drop a comment in case you have more inputs. From all of us as Sunkalp Energy, good luck with the transition to the new tax regime!

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The Global Grid: Cooperation for Sustainability

Abstract
The world today faces four faceted energy challenges of supply, security, access and de-carbonization. In a highly interdependent world where renewable energy is becoming an increasing part of the global energy mix, this paper proposes global energy connectivity as an important part of the solution. We analyse the technical and political aspects of energy connectivity and present several case studies to be referred to by policy makers as they prepare for global energy connectivity.

Download complete paper: The Global Grid

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Summary

As the world takes small steps towards the Global Grid, we need to learn from the experiences of past attempts at Grid Connectivity. Wildly varying state and national level policies and interests expose connectivity projects, investors and entrepreneurs to political attacks and cost and schedule unpredictability.

Associations of countries and platforms such as ESCAP and ASEAN need to lay down protocols around how transmission services and energy will be traded. A stable political environment needs to be established along with a joint commitment towards energy connectivity

The Global Grid, if taken seriously by policy makers can become a worthy competitor for the considerable investments being made currently in large scale energy storage, as a solution to demand and supply variability.

Given India’s leadership in the Indian subcontinent and its commitment to renewable energy and to mitigating climate change, we are confident that India will take a leadership position in an endeavour towards building The Global Grid.

This paper was presented to India’s Hon. Minister of State for Power, Coal, New and Renewable Energy and Mines, Sh. Piyush Goyal,  at the 8th World Renewable Energy Technology Congress held in New Delhi from the 21st to 23rd August 2017.

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Obama COP21

#covfefe Exiting the Paris Agreement: Beginning of the End of America’s Powers

The color of the global empire may well be green. ~ Yuval Noah Harrari

In his bestseller about the human species, Yuval Harrari makes a compelling argument about the direction in which we are headed. He states that slowly nationalism is being replaced by a deep global co-operation over matters that affect the entire humanity. Our deep sense of national identity is being over-ridden by our identification with the human species and the urge to save and sustain it.

This is obvious in the formation of groups such as the European Union and the United Nations, which transcend political boundaries.
Mr. Harrari argues that as it becomes easier to conduct business, transact culturally and economically across boundaries, countries will soon merge into a single unified empire.

Every empire requires a bedrock for collaboration- preservation of the Earth and environment as we know it will be the bedrock for our global empire. (more…)

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GST Rate Schedule for the Solar Industry

The past few months were marked by substantial speculation around how GST will affect the solar industry. Sunkalp Energy had run a few analyses which had indicated a 12-15% increase in the cost of solar. Further we had made some recommendations for including solar and components in ‘zero’ lists.

This Friday the Government released final Goods and Services Tax (GST) rates under the new indirect tax regime proposed to be rolled out from July 1. Below GST rates will be applicable on solar goods:

  • Solar Panel -5%
  • Solar Cells -18%

(more…)

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Two Point Four Four- Bhadla Solar Park Results

We look on in disbelief as the results of aggressive bidding for the Bhadla Solar Park were announced today. ACME and SoftBank Energy won the tender to supply electricity at Rs. 2.44/ kWh and Rs. 2.45/ kWh respectively. The results came after open bidding that spanned two days and thirteen participants that included Hero Solar and Renew Solar Power.

Solar tariffs are in a state of free fall, these results come on the back of the widely celebrated results of Rs. 3.3/ kWh for REWA Solar Park in Madhya Pradesh, barely 4 months ago.

At Rs. 2.44 per unit, electricity from the Bhadla Solar Park will be 25% cheaper than that from coal power plants.

Only one question remains to be answered: Is this sustainable or a bubble waiting to burst?

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