Monday, February 20, 2012

Small hydro sector should be given status of zero/nominal duty under GST, says FICCI


The government has a declared policy on Ultra Mega Power Projects wherein the entire project gets duty exemption. FICCI in its pre-budget memorandum recommends that the same facility should be extended to small hydro projects wherein, based on a certificate issued by the concerned state nodal agency, the project should be made excise and customs duty exempt.
The developer concerned can then issue certificates to the E&M supplier for duty exemption, thereby making the projects duty exempt.
Since small hydro also uses a number of components which are common in nature to many other industry sectors, the provision should ensure that any component certified to be a part of the small hydro project by the E&M supplier should get the benefit of exemption.

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