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Title: Duty, taxes to lift solar tariffs to about ₹2.6 per unit next fiscal
Date:25 October 2021

Solar tariffs may rise to ₹2.6-2.7 per unit (from an all-time low of ₹2 a unit) over the next fiscal in the wake of the recent increase in the GST on renewable energy equipment, and the proposed customs duty on imported solar modules. The government of India has increased GST on critical components of a solar project such as photovoltaic cells and modules from 5% to 12% with effect from 1 October 2021. This has increased the total taxation on a solar project from 8-9% to 12-13%1. It will more than double to 30% when customs duty of 40% on imported solar modules kicks in from 1 April 2022.

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