08-September-2026
Taxation
 
GST Council may consider flat 5% rate for renewable EPC contracts to ease duty impact
08-Sep-2026

The GST Council may discuss tweaking the tax structure for renewable energy engineering, procurement and construction (EPC) contracts at its October meeting, government sources told Moneycontrol.The council may consider slashing the goods and services tax (GST) on the services component of these contracts to 5 percent from 18 percent, aligning it with that on renewable energy equipment. An EPC contract is a model used for large-scale infrastructure and energy projects. Under the agreement, a single contractor is responsible for delivering a fully operational project to the owner from start to finish handling everything from design and equipment sourcing to final construction.

News Source:- https://www.moneycontrol.com/news/business/gst-council-may-consider-flat-5-rate-for-renewable-epc-contracts-to-ease-duty-impact-14024413.html