Battery Storage Industry Seeks 5% GST on Containerised BESS

• Renewable energy developers want GST on standalone/containerized BESS cut from 18% to 5%, matching solar equipment, to speed deployment.
• The National Solar Energy Federation of India says the higher tax makes BESS projects less competitive and raises storage costs.
• A 5% GST could lower levelized cost of storage by about ₹0.25–0.41 per unit.
• The federation argues BESS should be treated like a generation asset and taxed as a composite project, similar to solar and wind.
• The expected long-term economic benefit from lower storage costs (~₹24,000 crore NPV) is projected to exceed the estimated GST revenue loss (~₹20,000 crore).

Source: a2ztaxcorp.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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