The reduction in the tax rates will make green hydrogen and batteries more affordable.
The Goods and Services Council has recommended slashing the tax on green hydrogen, batteries, and electrolysers from 18% to 5%.
According to media reports, the recommendations of the panel will be placed before the GST Council at the next meeting that is scheduled for July 2025. The Council will make the final call on the tax rates.
The move will be welcomed by the industry, which has been pushing for rate cuts. The reduction in the tax rates will make green hydrogen and batteries more affordable, thus promoting the adoption of this technology.
Meanwhile, the Adani Group recently commissioned India’s first off-grid 5 MW green hydrogen pilot plant in Kutch, Gujarat. It runs completely on solar energy and is integrated with a Battery Energy Storage System (BESS), which allows it to operate completely off the grid.
Source: ET Auto
