Jul 11 2017 | India Opportunities
Hartek Group sees GST benefits for the power sector
Hartek Singh, Founder & CMD, Hartek Group favours GST and is quite optimistic about the likely benefits to the power sector on the whole. He said, "The decision to bring coal under the 5% tax slab as against 11.7% earlier will lead to a reduction in tariffs, which will eventually be passed on to the consumers. A single tax on capital goods chargeable at 18% will help power project developers reduce their costs and have a favourable impact on project finances. Previously, power generating companies were paying 2-3% central sales tax and differential VAT over and above the 12% excise duty.
The GST Council has also done well by bringing down the tax on solar modules, which so far enjoyed tax exemption, from 18% to 5%. A GST of 18% would have restricted the flourishing solar industry by resulting in a steep 10-12% increase in solar project costs. "