GST notification on solar projects adds to ambiguities

Solar power projects in India have suffered from ambiguity regarding applicability of the goods and service tax (GST) on input. This is a critical issue since power projects have no output GST and thus their entire input GST becomes a cost for the project leading to higher tariff. A concessionary rate of 5% GST has been provided for solar power generating systems, solar PV modules and parts for ma…