In a big boost to the renewable energy component manufacturing, the Ministry of Finance reduced the goods and services tax (GST) on solar cells, wind energy generators, and biogas plants from 12% to 5%. The reduced GST rates were announced at the 56th meeting of the GST Council. The GST reduction will make solar project development cheaper by about 5%. Solar tariffs may also come down significantly. Solar cells, regardless of whether they are assembled into modules, will now be subject to a GST of 5%. The same rate of GST will apply to solar lanterns/solar lamps, solar cookers, and solar water heaters and systems.