India, Sept. 17 -- In a landmark reform aimed at accelerating India's shift to clean energy, the GST Council at its 56th meeting on 3 September 2025 approved the reduction of GST on renewable energy devices from 12% to 5%. This decision, aligned with Prime Minister Narendra Modi's vision of making GST a truly "Good and Simple Tax," is expected to lower the cost of renewable projects, boost domestic manufacturing, and make clean power more affordable for households, farmers, and industries.
The rationalised GST rates will significantly cut project costs. For example, a utility-scale solar project costing around ?3.5–4 crore per MW will now save approximately ?20–25 lakh per MW, translating to over ?100 crore in savings for a 500...