Key Points
Though not a usual practice for votes on account (as they deal with expenditure, not revenue), the government may consider a revision in taxes and duties on battery energy storage systems and green hydrogen supply chain components to provide a fillip to growth of these from the first quarter itself of the fiscal year," the ReNew chairman added..
He listed these as the customs duty paid on import of solar modules or solar cells, used in setting up of solar power plant for supplying renewable energy to green hydrogen plant; and secondly, loss of GST (goods and services tax) input pertaining to all procurements made by solar/wind power plant in setting up the unit, since the output electricity is exempt.".
Jacob said the supply of electricity by a solar or wind power plant to a green hydrogen unit should be considered a deemed export, so that the power plant is eligible to claim refund on input GST, which then doesnt become a cost to green hydrogen..
Alternatively, the Central Board of Indirect Taxes and Customs (CBIC) should also allow direct refund of GST paid on all capital goods, inputs and input services used in generating power by a solar or wind power plant, with the condition that the output electricity is supplied exclusively to a green hydrogen unit..
In terms of customs duty, CBIC should either provide upfront exemption from basic customs duty of 40% on import of solar modules, with specified end-use condition of using such solar power plant for supplying electricity exclusively to a green hydrogen project, or provide the benefit of project import with concessional basic customs duty of 7.5% on solar power plant or solar power project, being set-up for supply of electricity exclusively to green hydrogen project," he said..
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