Solar energy stocks were trading flat on Thursday, September 4, despite the Indian stock market trading higher after the government announced GST rate cuts for a wide range of goods ahead of the festive season.
Solar Industries’ share price was down 2.41 per cent. Meanwhile, Acme Solar, Inox Green shares were trading flat.
In an exchange filing, Solar Industries said that an explosion incident had occurred on September 4 at 12:33 am in the Crystallisation Building while performing the crystallisation process of an energetic material in Solar Industries India Ltd, Chakdoh, Nagpur (MH).
Other solar stocks like Vikram Solar were also trading in the red despite the government cutting the tax rate on renewable energy equipment to 5%.
GST Council Meeting: GST on energy equipments reduced to 5%
In a major push for renewable energy component manufacturing in India, the Goods and Services Tax Council on Wednesday announced a reduction in the tax rate on items such as solar cells, biogas plants, and windmill equipment, bringing it down from 12 per cent to 5 per cent.
According to a notification from the Central Board of Indirect Taxes and Customs, this step aims to boost the adoption and production of renewable energy goods across the country.
“These goods already faced an inverted duty structure. While reducing the GST rate to 5% will deepen inversion, a mechanism for refund arising out of the inverted duty structure is available. In addition, process reforms will ensure expedited refunds,” it said.
The updated 5% GST rate applies to solar cookers, biogas plants, solar-powered devices, solar power generators, windmills, wind-operated electricity generators (WOEG), waste-to-energy plants and equipment, solar lanterns or lamps, ocean wave or tidal energy devices or plants, and solar photovoltaic (PV) cells, whether or not assembled into modules.
“The decision by the GST Council to reduce the GST rate on solar components from 12% to 5% marks a pivotal step in accelerating India’s clean-energy transition. This significant reform greatly increases the accessibility of solar installations for households, businesses, and farmers across the country,” said Gautam Mohanka, Director, Gautam Solar.
At a time when India and the world are facing extreme weather events, rising temperatures, and erratic climate patterns, the need to decarbonise our energy systems is urgent, said Mohanka.
” By reducing this financial barrier, the government is making solar power more affordable and enabling faster adoption, which will directly help cut carbon emissions and reduce dependence on fossil fuels. We believe this tax break will not only boost energy security and encourage new project pipelines but also contribute meaningfully to India’s climate action commitments and its global responsibility to combat climate change. I commend the Council’s vision and urge swift implementation so that the industry can leverage this momentum for a greener, more climate-resilient future,” said Mohanka.
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