No customs duty on imported solar cells and modules, says ministry

There is already safeguard duty of 15 per cent levied on the imported solar cells and modules

solar cells

The domestic solar manufacturing industry in a petition has now asked the Centre to consider extending the duty beyond two years

Shreya Jai New Delhi
The Ministry of New and Renewable Energy (MNRE) clarified that the basic customs duty (BCD) on imported solar cells and modules would remain nil in the current financial year.

In this year's Union Budget, two new item heads were inducted in the customs duty bracket which pertained to solar cells and modules. The Budget proposed a 20 per cent BCD on solar equipment. However, these items will continue at ‘nil’ BCD,” according to the budget speech.

The announcement led to confusion with the industry claiming that solar equipment is exempted from BCD. Solar cells and modules (under item number 8541) are exempted from any BCD, according to a 2005 notification of the department of revenue.

First Published: Feb 13 2020 | 5:18 PM IST

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