Uttarakhand Offers GST Registration Exemption | 13 Jan 2025

Why in News? 

The Uttarakhand government has announced a significant relief for solar entrepreneurs by exempting them from the mandatory Goods and Services Tax (GST) registration under the Mukhyamantri Saur Swarojgar Yojana 

  • This initiative aims to streamline processes and encourage investments in renewable energy projects across the state.

Key Points

  • The Director General of Industries and Managing Director of SIDCUL (State Industrial Development Corporation of Uttarakhand Limited), disclosed this decision during the Pravasi Sammelan (Diaspora Conference).  
    • It was highlighted that the exemption comes in response to long-standing demands from solar project investors who faced delays due to GST registration requirements. 
  • Under the Mukhyamantri Saur Swarojgar Yojana, thousands of solar plants have already been installed, and many more are in progress.  
  • Previously, entrepreneurs had to register for GST to claim subsidies, despite solar energy being exempt from GST.  
    • The new policy eliminates this step, making the process more efficient and reducing bureaucratic hurdles for solar project developers. 
  • Uttarakhand Government’s Renewable Energy Vision: 
    • This decision reflects the Uttarakhand government’s commitment to promoting renewable energy and sustainable development 
    • By simplifying the investment process, the government aims to attract more entrepreneurs to the solar energy sector, contributing to both economic growth and environmental conservation. 

Mukhyamantri Solar Swarozgar Yojana 

  • In 2020, Uttarakhand launched the Mukhya Mantri Saur Swarojgar Yojana to promote self-employment through solar energy farming. 
  • The aim of the scheme is to promote the production of green energy and to provide self-employment opportunities to the youth of the Uttarakhand and returning migrants. 
  • Each beneficiary of this scheme will be allocated solar plants of 25 kilowatts.