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KERC Allows Solar Developers to Recover GST Paid on Land Lease Rentals

The Commission directed HESCOM and BESCOM to reimburse actual GST payments instead of approving tariff increases

July 20, 2026

/ Arjun Joshi
/ Markets & Policy, Paid, Solar
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The Karnataka Electricity Regulatory Commission (KERC) has ruled that the goods and services tax (GST) imposed on lease rentals for project land under the reverse charge mechanism constitutes a change-in-law event under the power purchase agreements (PPAs).

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Arjun Joshi

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Change in LawGSTKarnatakaKERC
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