To encourage entrepreneurs to set up ventures for manufacturing solar devices and equipment in the state, the Haryana government today exempted solar devices and equipment or parts used in installation of solar power projects, from the levy of Value Added Tax (VAT) in the state.
A decision to this effect was taken by the Haryana Cabinet, which met under the chairmanship of the Chief Minister, Manohar Lal Khattar, on Tueday.
At present VAT of five per cent plus surcharge is levied on solar devices and equipment in the state. Punjab, Uttar Pradesh, Delhi, Maharashtra and Madhya Pradesh have already exempted solar energy devices from VAT.
Exemption of VAT will enable the trade and industry in Haryana to compete with other states where solar energy devices are exempted from VAT. This exemption will cost the state exchequer about Rs 2.30 crore.