FAQs - GST on solar panels, inverters and EPC in India

Q) Is Alphaloop Solar registered and compliant under GST?

A) Alphaloop Solar LLP is registered under GST and its GSTIN is 06ABBFA1648N1ZE. The company is fully compliant under GST.

Q) What is the GST rate and HS code for solar modules in India?

A) GST rate for solar modules in India is 5% and the applicable HS code is 85414011.

Q) What is the GST rate and HS code for solar inverters in India?

A) GST rate for solar inverters in India should be 5% and the applicable HS code would be 85049090. However, MNRE, in consultation with Ministry of Finance will need to come out with guidelines to avail the concessional 5% GST rate as the original GST rate for the said HS code is 18%. Until this notification is released, effective GST on solar inverters will be 18%. In addition, there will be a 10% Basic Custom Duty (BCD) on solar inverter import. As in the past, projects above 100 kWp can avail a custom duty waiver through Concessional Customs Duty Certificate (CCDC).

Q) What is the GST rate and HS code for solar module mounting strcture in India?

A) GST rate for solar module mounting structure will be 18% when being bought from a fabricator by an EPC company. The applicable HS code will be 73089090. However, it can be sold as a part of a solar power plant at 5% GST. The government may come out with a similar notification for module mounting strutures to reduce effective GST rate to 5%. More clarity is awaited.

Q) What will be the applicable GST on solar EPC?

A) The applicable GST rate for supply of equipment for a solar power plant will be 5%. However, for installation and engineering services, EPC companies and installers will need to raise a separate works contract bill with a GST rate of 18%.

Q) Will prices for solar equipment increase under GST?

A) Prices for solar panels are likely to increase by 5% under GST. Overall, the cost of a rooftop solar power plant will likely go up by 3-6%, depending on CCDC and other benefits being availed by the project.

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