NSEFI Hails GST Cut on Renewable Energy Equipment to 5%, Backs Faster Clean Energy Transition

The National Solar Energy Federation of India (NSEFI) has welcomed the Goods and Services Tax (GST) Council’s decision to reduce the tax rate on renewable energy equipment to 5 percent.

Industry representatives said the move marks a significant relief for the renewable energy sector, which has been facing cost pressures in recent years. According to NSEFI, the reduction will improve liquidity across the value chain, allowing developers and manufacturers to scale up projects more efficiently.

The body further emphasized that the decision comes at a crucial time as India accelerates its energy transition and expands green capacity nationwide.

Experts believe the GST cut will encourage greater investment in clean technologies, enhance the competitiveness of renewable projects, and support India’s long-term goal of achieving net-zero emissions. Many stakeholders have expressed confidence that the measure will act as a catalyst for sustainable growth in the sector.