Common man’s lottery! From solar panels to electrical goods, prices have become cheaper, know how much will be the impact on your pocket:

New Delhi. Amid rising inflation, the Central Government has played a big masterstroke to provide relief to the common man. The historic decisions taken in the 56th GST Council meeting have opened a new avenue of savings for the middle class. Giving a strong booster dose to the renewable energy sector, the government has drastically reduced the tax rates on equipment related to solar and wind energy. This step will not only reduce electricity bills but will also prove to be a milestone in making India a ‘green energy’ hub.

Solar energy becomes super cheap: tax reduced from 12% to 5%

The biggest decision in the meeting was taken regarding clean energy products. Now the GST rate on appliances like solar panels, solar cookers, photovoltaic cells and solar water heaters has been reduced. Reduction from 12% to only 5% Has been done. These new rates have become effective from 22 September 2025. The government’s goal is clear—to provide solar panels on the rooftop of every house. This will provide permanent relief to middle class families from expensive electricity bills and the environment will also be safe.

Big savings for middle class: understand mathematics

This tax cut will have a direct impact on your pocket. For example, if you installed a solar system worth Rs 1 lakh for your home, then earlier you had to pay GST of Rs 12,000. But now you will have to pay tax at the rate of 5% only Rs 5,000. i.e. directly Savings of Rs 7,000. This savings will be in lakhs in big installations and commercial projects, which will also provide huge benefits to small industries and farmers.

Solution of inverted duty: Big relief to the industry

A technical challenge with the change in tax rates was the ‘inverted duty structure’, where the tax on raw materials became higher and that on finished goods became lower. Due to this, there was a fear of companies getting stuck in Input Tax Credit (ITC). However, the government has assured the industry that the refund process will be made ‘superfast’. With this, there will be no shortage of cash flow for the companies and the supply of clean energy products in the market will remain smooth.

GST slab simplified: even everyday items will become cheaper

The Council has taken steps towards simplifying the entire GST framework, not just the energy sector. Now an attempt has been made to bring most of the items in the slab of 5% and 18%. This will directly benefit the household budget. There will be stability or decline in the prices of household electronics items like butter, ghee, shampoo and TV-AC. At the same time, 40% tax on luxury and harmful goods (sin goods) has been retained.