https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

CBIC Withdraws Customs Duty Deferment for Solar Power Projects

The Manufacturing and Other Operations in Customs Bonded Warehouses (MOOWR) scheme, introduced by the CBIC, had enabled companies to defer customs duties on imported goods used for manufacturing or other approved activities.
Central Board of Indirect Taxes and Customs
Indian Masterminds Stories

The Central Board of Indirect Taxes and Customs (CBIC) has withdrawn customs duty deferment benefits previously available to solar power generation companies using imported goods stored in customs-bonded warehouses.

In a recent notification, the CBIC stated that manufacturing processes and related operations involving imported goods for solar power generation projects supplying electricity would no longer be allowed in bonded warehouses. This change takes effect from December 17, 2024.

The Manufacturing and Other Operations in Customs Bonded Warehouses (MOOWR) scheme, introduced by the CBIC, had enabled companies to defer customs duties on imported goods used for manufacturing or other approved activities.

Abhishek Jain, Partner and Head of Indirect Tax at KPMG in India, noted that the government has now formalised its position through this notification, disallowing customs duty deferral benefits for solar power companies. He explained that earlier attempts to restrict such benefits through a circular had faced challenges, but the new legal framework solidifies the prohibition.

Saurabh Agarwal, Tax Partner at EY India, highlighted that the move essentially eliminates the MOOWR scheme for solar power producers, even impacting those who have already utilised its benefits. He warned that companies might need to de-bond solar farms and pay import duties on previously imported goods, potentially causing cash flow disruptions.

Agarwal also pointed out that this development could affect the profitability of solar plants, especially if power purchase agreements (PPAs) do not account for tariff adjustments resulting from changes in law. He emphasised the need for the industry to thoroughly assess the amendment and explore possible actions, such as filing claims for tariff revisions.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
DGR Job Fair
DGR Job Fair 2025 Held in Delhi to Empower Ex-Servicemen with Career Opportunities in Emerging Tech - Details Inside
omc
Odisha Mining Corporation (OMC) Begins Dispatch from Dubna Mines, Strengthening Supply Chain and Industrial Growth
NFDC
NFDC Launches Free Residential 3D Animation & VFX Training for North East Youth - Here's All You Need To Know
CM Yogi
CM Yogi Adityanath Reviews Rs. 42,891 Crore Development Proposals for Lucknow Division, Emphasizes Timely, Inclusive Execution
Mahanadi River
Chhattisgarh CM Vishnu Deo Sai Assures Odisha of Consideration on an Amicable Solution to Mahanadi Water Dispute
MP News
Madhya Pradesh CM Dr. Mohan Yadav Pays Tribute to Pt. Ravishankar Shukla on His Birth Anniversary
ONGC_resized
ONGC Sets Record Date for Rs1.25 Final Dividend for FY25; Strengthens Shareholder Returns- Check Details
CM Pushkar Singh Dhami
PM Modi Releases 20th PM-KISAN Instalment; CM Pushkar Singh Dhami Thanks Centre for Supporting Over 8 Lakh Farmers in Uttarakhand
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Karn Satyarthi
How IAS Karn Satyarthi Transformed Gumla Through Empathy and Innovation
Ananth Rupanagudi IRAS
IRAS Ananth Rupanagudi’s Take on Corruption, Reform, and Duty
WhatsApp Image 2025-07-26 at 13.16
What Most Indians Don't Know About Jim Corbett
ADVERTISEMENT
UPSC Stories
BPSC Bihar police
From Lantern Light to Police Uniform: How Praveen Kumar from a Small Bihar Village Cracked BPSC to Become SDPO
From a lantern-lit village in Bihar to becoming an SDPO, Praveen Kumar's journey is a testament to resilience,...
IAS Priyansha Garg
Why Mindset Matters: IAS Priyansha Garg’s Mental Health Mantra for UPSC
After two failed prelims, Priyansha Garg cracked UPSC with AIR 31 in her fourth attempt, proving how...
Ashish Akshat
From Setback to State Topper: How Ashish Akshat Topped JPSC While Working Full-Time
Ashish Akshat from Dhanbad topped JPSC 2023, proving that resilience, discipline, and family support...
Social Media
Mudumalai Tiger Reserve
Mudumalai Tiger Reserve: From India’s First Sanctuary to a Tiger Conservation Success Story | International Tiger Day Special
IAS Supriya Sahu Hails Mudumalai's Role in Tiger Conservation on Tiger Day. Declared in 1940, Now Among...
Mangroves
Mangroves: Nature’s Shield Against Disasters, Says Officer Parveen Kaswan on Mangroves Day - Watch His Post Here
Mangroves, with their dense, interlaced root systems, form a mesh-like structure that serves as a buffer...
Retired IPS Inderjit Singh Sidhu
Purpose Doesn’t Retire: How 88-Year-Old Retired DIG Becomes Chandigarh’s ‘Quiet Warrior’ of Cleanliness
Inderjit Singh Sidhu’s Dawn Patrol Earns Applause, Mahindra’s Praise for a Man Who Chose Action Over...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
DGR Job Fair
DGR Job Fair 2025 Held in Delhi to Empower Ex-Servicemen with Career Opportunities in Emerging Tech - Details Inside
omc
Odisha Mining Corporation (OMC) Begins Dispatch from Dubna Mines, Strengthening Supply Chain and Industrial Growth
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Karn Satyarthi
Ananth Rupanagudi IRAS
WhatsApp Image 2025-07-26 at 13.16
ADVERTISEMENT
ADVERTISEMENT