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MNRE strict on return of GST and safeguard duty compensation

Developer in recent past agitated that they are not paid for GST as well as safeguard duty compensation, as was promised by government. Monitoring on the development MNRE directed SECI and NTPC to compensate developers for GST and safeguard duty within 60 days and on default a late payment surcharge (LPS) may be imposed or the payment can be made on an annual basis spread throughout the power purchase agreement (PPA) tenure. As per the GST implementation, developers came under a clause called “Change in Law.” Change in law comes into play when there is a new law or a change in the tax structure or when a new tax is introduced and developers were to be reimbursed against GST and safeguard duty.