The Goods and Services Tax (GST) Council has been directed by Delhi High Court to review the tax structure for solar power projects.
The decision was in response to a petition filed by the Solar Power Development Association. SPDA challenged the latest tax formulation for solar power generating systems unveiled on January 1.
Delhi High Court has asked the GST council to relook at the mater in consultation with the Central Board of Indirect Taxes and Customs and the MNRE.
The court has given two months’ time to the government to revert and scheduled the next hearing in August.
Rohan Shah, the counsel who represented the industry said “Between divergent AARs and an ad hoc basis of fixing a presumptive valuation between goods and service, the solar sector has had a chaotic induction into GST…(order) holds out hope of a quick and definitive solution to this long-standing problem of the solar industry,” reports ET.