Power ministry pushes for GST cut on hydropower project components
POWER & RENEWABLE ENERGY

Power ministry pushes for GST cut on hydropower project components

The Union Ministry of Power is poised to request a reduction in the Goods and Services Tax (GST) applied to components utilised in hydropower projects. According to two individuals familiar with the matter, the ministry is contemplating seeking a reduction in GST rates for components such as turbines, steel, and cement, which are currently categorised in the higher tax slabs.

These recommendations were deliberated during a recent meeting held within the ministry and are expected to be raised with the Finance Ministry. Additionally, the Central Electricity Authority (CEA) has presented a case advocating for a reduction in GST rates for these components.

One of the two sources mentioned above stated, "Since the current GST rate for these components is set at 18% or higher, it is imperative that the tax rates are brought down to at least below the 18% slab. The proposal to the Finance Ministry would advocate for reclassifying these items into the 5% GST slab, as suggested by stakeholders."

Presently, turbines and steel are subjected to an 18% GST rate, while cement is levied at the highest slab of 28%.

The Union Ministry of Power is poised to request a reduction in the Goods and Services Tax (GST) applied to components utilised in hydropower projects. According to two individuals familiar with the matter, the ministry is contemplating seeking a reduction in GST rates for components such as turbines, steel, and cement, which are currently categorised in the higher tax slabs.These recommendations were deliberated during a recent meeting held within the ministry and are expected to be raised with the Finance Ministry. Additionally, the Central Electricity Authority (CEA) has presented a case advocating for a reduction in GST rates for these components.One of the two sources mentioned above stated, Since the current GST rate for these components is set at 18% or higher, it is imperative that the tax rates are brought down to at least below the 18% slab. The proposal to the Finance Ministry would advocate for reclassifying these items into the 5% GST slab, as suggested by stakeholders.Presently, turbines and steel are subjected to an 18% GST rate, while cement is levied at the highest slab of 28%.

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?