- The upcoming Union Budget for fiscal year 2024-25, to be presented by Finance Minister Nirmala Sitharaman on July 23, may bring pivotal changes to the power sector, including potential inclusion under the Goods and Services Tax (GST).
- The National Solar Energy Federation of India (NSEFI) has proposed measures to reduce costs and promote sector growth. Currently, the power sector is not covered under GST, leading to increased tariff burden due to indirect taxes. NSEFI’s proposal aims to streamline taxations and lower costs for consumers and businesses.
- Other recommendations include maintaining customs duty exemption on key renewable energy components and removing electricity duty and cross-subsidy surcharge on power used in charging Energy Storage Systems.
- The federation also urges the introduction of Viability Gap Funding for Pumped Storage Projects and support for agrivoltaic pilot projects.
- If accepted, these reforms could significantly impact India’s energy landscape.
Source A2ztaxcorp
