At present, solar panels are exempt from basic customs duty and CVD. The same was the position during each of the last three years. All goods used in the manufacture of solar panels were also exempt from basic customs duty during the last three years.

The fiscal steps taken to boost solar power generation include, inter alia, excise duty exemption on (i) solar cell/modules; (ii) machinery and equipment required for initial setting up of a solar power generation or solar energy production project; (iii) EVA sheets and solar backsheets and specified inputs used in their manufacture; (iv) solar tempered glass used in the manufacture of solar PV cells and modules; and (v) flat copper wire for the manufacture of PV ribbons for use in solar cells and modules. To maximize utilization of solar power, exemption from basic custom duty has been extended on specified inputs for use in the manufacture of EVA sheets and backsheets and flat copper wire for the manufacture of PV ribbons.

This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.

Exemption from basic customs and excise duty on solar components expanded to cover specified inputs, aiding solar manufacturing. Exemption from basic customs duty and CVD applies to solar panels and longstanding relief covered goods used in their manufacture. Excise duty exemptions are provided for solar cells/modules, machinery for initial solar projects, EVA sheets and backsheets and specified inputs, solar tempered glass for PV cells and modules, and flat copper wire for PV ribbon manufacture. Basic customs duty exemption has been extended to specified inputs for EVA sheets and backsheets and to flat copper wire for PV ribbons to maximise utilisation of solar power.