The Indian Indirect Tax and Customs Central Committee issued a clarification that most of the PV modules will not be subject to tariffs. After this clarification was released, one of the main reasons for uncertainty in the Indian solar industry has finally subsided.
Due to the threat of India's GST and imposing anti-dumping duties and guarantee taxes, tariffs have always been one of the key factors causing uncertainty in the Indian market. In particular, Indian developers have imported most of the components.
According to CTH 8541, when solar modules are classified as 'diodes, transistors and similar semiconductor devices, photosensitive semiconductor devices', they enjoy import duty-free. However, according to CTH 8501, the new category of solar modules is 'electric motors and power generation. Machines', which includes 7.5% of the tariffs, CTH 8501 has been gradually implemented since last year.
Subsequently, a long-term stalemate between the developers, the Ministry of Finance and the customs authorities on this issue, a large number of components remained in the port. At that time, the “Economic Times” of India first reported the situation. The Central Commission for Indirect Taxation and Customs in India finally made the following clarifications:
Components with bypass diodes classified as CTH 8541
Components with blocking diodes are classified as CTH 8501
Components with bypass diodes and blocking diodes are classified as CTH 8501
Vinay Rustagi, executive director of India Bridge Consulting, told PV Tech that according to this new clarification, most of the components used by the Indian solar industry will not be subject to any tariffs.
After a series of bad news came out, Rustagi said that the move was very popular, and it is worth mentioning that this clarification was released in tandem with the recent clarification of the “legal change” clause for solar energy purchases.
He added that there are more and more signs that the Ministry of Finance will adopt a tough stance to impose component tariffs, so developers should be very satisfied with the final results.
