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India relieves most solar modules from customs duty

India relieves most solar modules from customs duty

MUMBAI: One of the major causes of uncertainty for India’s solar sector has been put to rest after the Central Board of Indirect Taxes and Customs (CBITC) clarified that most PV modules will not be subject to customs duty.

Along with the goods and service tax (GST) and the threat of anti-dumping and Safeguard duties, the customs duty has been one of the key pillars of uncertainty for the Indian market, particularly as Indian developers import an overwhelming majority of their modules.

Solar modules had enjoyed free imports while classified as ‘diodes, transistors and similar semiconductor devices, photosensitive semiconductor devices’, under the code CTH 8541. However, a new classification as ‘electrical motors and generators’ under CTH 8501, which included a 7.5% customs duty, started to be implemented gradually last year.