Now solar panels will have to be cheaper on the roof of the house, government reduced tax!

New Delhi: If you are thinking of installing solar panels in your home or starting any work related to green energy, then there is a great news for you. The government has taken an important step to promote green energy in India, which will now make it more cheaper to adopt clean energy.

What is the big decision of the government?

In the GST Council meeting on 3 September, it was decided that the taxes on renewable energy and their parts would be severely cut. Now items such as solar panels, windmills, biogas plants, and solar water heaters will be charged only 5% GST, which was earlier 12%. This simply means that now all these things will be found cheap before you.

But on the other hand, the government has increased the tax on coal and lignite from 5% to 18%. This decision clearly shows that the government now wants to pursue green energy instead of traditional energy.

Relief on batteries and hydrogen trains

Not only solar and wind energy, the government is also focused on store energy. Therefore, non-lithium ion batteries like lead acids and sodium have also been reduced from 28% to 18%. However, tax on lithium-ion batteries used in mobile and laptops will remain 18%.

Apart from this, the government also wants to promote hydrogen -powered vehicles like electric vehicles. For this reason, GST on fuel cell cars, buses and trucks has also been reduced from 12% to 5%. Finance Minister Nirmala Sitharaman said that these new rates will be implemented in the entire country from September 22.

What will be the effect of this decision?

Experts believe that this deduction in tax will reduce the cost of setting up green energy projects, which can make the electricity produced by solar and wind energy even cheaper. This step will give big companies like Reliance, Adani Group, and Tata Power as well as new companies to enter this sector. Overall, this decision will take India a step further in terms of clean energy.