+
 Rooftop solar projects CFA to be calculated as per revised GST rates
POWER & RENEWABLE ENERGY

Rooftop solar projects CFA to be calculated as per revised GST rates

The Ministry of New and Renewable Energy (MNRE) told the media that the Central Financial Assistance (CFA) for rooftop solar projects would be calculated as per the revised Goods and Services Tax (GST), excluding the GST rates.

According to MNRE, the old GST rates will be valid for invoices raised before 1 October 2021. To calculate CFA, the GST will be added to the benchmark or the tender value.

Previously, MNRE reduced the benchmark costs for grid-connected rooftop solar projects for 2021-22, excluding the GST. The new benchmark costs range from Rs 35.89 per W to Rs 46.92 per W, while earlier, the range was Rs 39.08 per W to Rs 51.1 per W.

MNRE told the media that after the revision of GST rates for renewables, it decided to revise the benchmark costs, excluding the GST rates.

MNRE said that the state implementation agencies should submit a separate list of systems with the new GST rate and the invoices while claiming CFA. They must also submit a declaration that the documents have been checked to the revised GST.

Earlier this year, the GST council said that for specific renewable energy equipment, the GST rate would be increased to 12% from 5%.

The rise in GST rate is a challenge for the project developers as it will impact the project cost. Some solar developers said that the increased GST rate would make many renewable energy projects unviable.

For the past six months, solar developers have faced challenges due to increased prices of solar modules and metals. Increased GST is also a challenge for them as the renewable energy sector has started to recover from the distress of the second wave of the Covid-19 pandemic.

Image Source

The Ministry of New and Renewable Energy (MNRE) told the media that the Central Financial Assistance (CFA) for rooftop solar projects would be calculated as per the revised Goods and Services Tax (GST), excluding the GST rates. According to MNRE, the old GST rates will be valid for invoices raised before 1 October 2021. To calculate CFA, the GST will be added to the benchmark or the tender value. Previously, MNRE reduced the benchmark costs for grid-connected rooftop solar projects for 2021-22, excluding the GST. The new benchmark costs range from Rs 35.89 per W to Rs 46.92 per W, while earlier, the range was Rs 39.08 per W to Rs 51.1 per W. MNRE told the media that after the revision of GST rates for renewables, it decided to revise the benchmark costs, excluding the GST rates. MNRE said that the state implementation agencies should submit a separate list of systems with the new GST rate and the invoices while claiming CFA. They must also submit a declaration that the documents have been checked to the revised GST. Earlier this year, the GST council said that for specific renewable energy equipment, the GST rate would be increased to 12% from 5%. The rise in GST rate is a challenge for the project developers as it will impact the project cost. Some solar developers said that the increased GST rate would make many renewable energy projects unviable. For the past six months, solar developers have faced challenges due to increased prices of solar modules and metals. Increased GST is also a challenge for them as the renewable energy sector has started to recover from the distress of the second wave of the Covid-19 pandemic. Image Source

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?