GST on Renewable Energy Devices Rationalised to 5 Percent

The government has rationalised and reduced the Goods and Services Tax (GST) rate on renewable energy devices to 5%, aligning with the broader GST rate rationalisation effective 22 September 2025. This move aims to promote adoption of renewable energy solutions by lowering the tax burden on solar and other green technologies. The reduction covers devices and components used in clean energy generation, intended to spur investment, improve affordability, and support environmental policy objectives. With the rate cut, costs for end-users—households, farms, businesses adopting renewable energy—are expected to fall. The rationalisation is part of the wider GST 2.0 reforms designed to lower rates on essential, green, and socially beneficial goods.