Government of India 22 September 2025 New from GST correction Has implemented. The change of this time has brought relief especially for common people and small businessmen. First on solar panel and its connected devices GST from 12% to 18% It seemed that the price of the system increased considerably. Now the government reduced it Only 5% Is done.
Its direct effect will be that Total price of solar system lower 8% to 10% Will be done. This will reduce electricity costs in homes and shopkeepers and small industrialists will also be able to install solar systems easily.
Difference between old and new GST
Earlier, tax was added from 12% to 18% on the solar system. Now it has come down to 5%. The difference in the table below can be clearly seen:
| Solar system | Old GST (12%-18%) | New GST (5%) | Total savings (%) |
|---|---|---|---|
| 3KW system | 12-18% | 5% | 7-13% |
| 5KW system | 12-18% | 5% | 7-13% |
| 10kw system | 12-18% | 5% | 7-13% |
Effect on 3KW Solar System
The 3KW solar system is quite popular for small homes and shops. Earlier, its price was more due to tax.
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Old price (without tax): ₹ 1,80,000
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Old Tax (12%): ₹ 21,600
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Total old price: ₹ 2,01,600
After the new GST rule:
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New Tax (5%): ₹ 9,000
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Total new price: ₹ 1,89,000
Direct savings: ₹ 12,600
Effect on 5KW Solar System
The 5KW solar system is considered perfect for large homes and small offices. This system used to become expensive in the old GST.
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Old price (without tax): ₹ 2,80,000
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Old Tax (12%): ₹ 33,600
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Total old price: ₹ 3,13,600
After the new GST rule:
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New Tax (5%): ₹ 14,000
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Total new price: ₹ 2,94,000
Direct savings: ₹ 19,600
Effect on 10kw solar system
The solar system of 10kw is an ideal option for factory, large shops and small industries. Due to old tax, its price was very high.
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Old price (without tax): ₹ 5,50,000
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Old Tax (12%): ₹ 66,000
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Total old price: ₹ 6,16,000
After the new GST rule:
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New Tax (5%): ₹ 27,500
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Total new price: ₹ 5,77,500
Direct savings: ₹ 38,500
New GST’s house and business effect
The new GST rule will have a major impact on both home and business. The monthly cost of electricity in homes will be very low. Small shopkeepers and businessmen will no longer pay much money to install solar systems.
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In the electricity bill of the house 70-80% reduction Might be possible.
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Long time for business Operational cost It will decrease considerably.
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Sales of solar systems are expected to rise before festivals.
