MNRE (Ministry of New and Renewable Energy) vide latest circular dated on 9 March 2021 has notified that a basic customs duty (BCD) on solar imports up to 40% is set to be levied from 1 April 2022.
As per the circular, Ministry of Finance (MoF) has agreed to impose basic custom duty (BCD) on Solar Modules (85414012) up to 40% whereas on Solar Cells (85414011) up to 25%. This will increase the price of solar rooftop systems in India as the present BCD is zero percent & also safeguard domestic solar manufacturers.
Indian solar manufacturer association was anticipating the customs duty on solar equipment since Finance Minister Nirmala Sitharaman included it in the union budget proposal in 2020.
