Name: Mani Parti
Country: India

Year: 2024
Volume: Volume-11, Issue-1 (January-June)
Page Number: 60-67

India’s transition towards a low-carbon and sustainable economy depends significantly on strengthening investment in renewable energy and environmentally responsible industries. Such a transition can contribute to economic resilience, environmental sustainability, and long-term energy security. Within this framework, the Goods and Services Tax (GST) system plays an important role in shaping the cost structure, investment environment and growth prospects of renewable and sustainable industries. The present study examines the influence of GST-related tax provisions and incentives on the development of renewable and sustainable industries and explores their potential contribution to economic growth in India. Particular attention is given to the GST treatment of renewable energy technologies and environmentally sustainable products and services with emphasis on tax rates, input tax credit, business-related tax benefits, overall tax incidence and compliance requirements. The study is based on secondary information obtained from GST notifications, government reports, policy documents, industry publications and other relevant sources. The findings highlight several concerns including compliance-related expenses, limitations in the effective utilisation of input tax credits and variations in the tax treatment of green products and services. At the same time an enabling and well-structured GST regime can encourage technological innovation, stimulate investment, generate employment and support industrial expansion. The study concludes that a stable, transparent and sustainability-oriented GST framework can strengthen India’s efforts towards inclusive economic growth while advancing its broader objectives of employment creation, environmental sustainability and long-term economic development.

Keywords: Goods and Services Tax (GST); Renewable Energy; Sustainable Industries; GST Incentives; Economic Growth