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Renewable sector, currently a beneficiary of several indirect tax exemptions, may be a big loser if goods and service tax is implemented since the bill proposes to revoke most of these exemptions, according to Bridge to India. Costs and tariffs are expected to rise by 12-20% as a result. GST is a key taxation reform as it seeks to simplify a complex maze of state and central taxes by subsuming these into a single tax levied at the point of consumption. According to reports the Bill could be passed by July 2016. If the bill is indeed passed as anticipated, it is expected to be implemented almost immediately. Bridge to India, a renewable analyst house, feels if GST is implemented, input cost or tariff will rise by anything between 12-20% in the sector and this would wipe out the pricing gains of the past two years. “A cost increase of this magnitude would also put viability of several projects in jeopardy. The Ministry of New and Renewable Energy (MNRE) is in dialogue with the Department of Revenue to ensure that renewable power equipment is exempted from GST. A recently concluded study by MNRE suggests that solar project costs and tariffs could go up by 12-20% on account of the new indirect taxation proposal. Such a material increase would erode most of price gains made in the past two years and also put .

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