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Solar Sector muddled on applicability of GST rate

<p><span style="font-size:11.0pt">Developer are still chaotic on applicability of GST rate on supply and erection of solar components. Some developers levy 5% tax on each component and 18% on services. Other companies that aggressively advocated a levy of 5% have got notices from tax authorities. </span></p> <p><span style="font-size:11pt">The industry is perplexed on account of divergent advance rulings. Developers awaits clarity on imposition of GST rate due, which has stalled pace of adding solar capacities. Need of the hour is that Government must intervene to provide clarity on taxability of solar power projects, else would jeopardize objective of achieving ambitious targets of 100 GW of solar by 2020.</span></p>