Budget 2020: Customs duty ambiguity on imported solar power equipment

Solar modules constitute 80% of the cost of a solar power project.

Solar power producers are in a knot over the proposed basic Customs duty (BCD) on imported solar cells and modules in the Union Budget on Saturday. The Budget speech mentioned two new item heads to be inducted in the Customs duty bracket.

The Budget has proposed 20 per cent BCD on solar equipment. “Create tariff items 8541 40 11 for ‘Solar Cells, not assembled’ and tariff item 8541 40 12 for ‘Solar Cells assembled in modules or made up into panels’”.

The tariff rate for these items is 20 per cent. However, these items will continue at ‘Nil’ BCD,” said