MNRE clarifies: Concessional Custom Duty Exemption continues post GST

Posted on Posted in Solar Facts

Slowly, but surely, clarifications are coming in about the duties and taxes that are there to stay and those that would no longer be valid. In a recent notification on 21st August 2017, Ministry of New and Renewable Energy clarified that Concessional Custom Duty Certificates (CCDC) will continue to be issued. It will be issued on the Bill of Materials to be imported for setup of the Solar Plant (refer).

The process to be followed for acquiring CCDC may be viewed here. The application for CCDC may be submitted via this link. The move to keep CCDC has led to the industry taking a sigh of relief in the midst of projects that EPCs have acquired but have not yet started construction for. Although, most industry members would agree, the delay in these clarifications has led to considerable delay in project execution as well, meaning costs.

MNRE has also clarified that Excise Duty Exemption Certificates (EDEC) for Solar Projects will cease. That’s because it will no longer be levied post GST (refer to our article on it).

Overall, the cost of going Solar remains on an upward trend since post GST, in any case, the prices to Installers and hence the end customer have risen (refer). In addition, since China has decided on using most of what it produces in solar modules (refer), India may not be able to benefit too much from lowering of prices of panels. This may make project quotes given based on ‘projections’ difficult to execute. However, parallelly, Ministry of New and Renewable Energy has also come out with guidelines for PPA projects with DISCOMs to improve bankability of solar power projects to ensure tariffs remain low (refer 1, refer 2). We are yet to see in which direction the industry will tilt- escalating or lowering tariffs.


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