The Central Board of Indirect Taxes and Customs (CBIC) notified changes in the Goods and Services Tax (GST) rates for a host of products with effect from Friday, including solar modules, fruit-based aerated drinks, medicines and drugs.
Renewable energy devices including solar panels and modules, bio-gas plants, solar power generators, windmills, solar lamps, tidal waves energy devices or plants and their parts, will be charged a GST of 12% against 5% earlier.
Under the existing regime, 70% of the gross value of the contract was considered for the supply of goods, attracting a 5% rate. This will now be 12%.
Experts said the increase will negatively affect the growth of the renewable energy sector. “Instead of providing the mechanism to allow refund of unutilized credit on input services and capital goods, the government has increased the GST rate on output supplies which will put additional burden in the hands of consumers,” said Tushar Aggarwal, founder partner at Tattvam Advisors.
The rate change will create transitional issues for ongoing renewable energy projects, he added.
Carbonated beverages of fruit drink or carbonated beverages with fruit juice will attract 28% GST along with a 12% cess, while tax on copper concentrates and other metals has been increased to 18% from 5% currently.
A lower rate of 5% will be applicable on remdesivir, anticoagulants such as heparin, itolizumab, posaconazole, infliximab, bamlanivimab, etesevimab, casirivimab, imdevimab, 2-Deoxy-D-Glucose and favipiravir until December 31.
Source : Economic Times
