The National Board of Revenue (NBR) on Monday issued a clarification to facilitate the release of imported goods used for solar power generation, amid reports of delays and complications in the assessment of such consignments at different customs houses and land customs stations.
According to the circular, both the existing notification on capital machinery and the notification issued on June 8, 2026 on renewable solar power generation and supply include Solar Photovoltaic/Module/Panel under HS Code 8541.43.00.
The NBR said an importer declaring multiple items related to solar power generation in a single Bill of Entry can avail the applicable benefits by mentioning the Customs Procedure Code (CPC) under the capital machinery notification for solar panels and the CPC under the renewable energy notification for other eligible items, subject to fulfilment of the prescribed conditions.
The revenue board also clarified that the concessional duty and tax benefits mentioned in the June 8 notification will apply to solar inverters.
It said HS Code 8504.40.90 has inadvertently been mentioned against Solar Inverter in Table-1 of the notification instead of HS Code 8504.40.40. Since the product description will prevail in this case, eligible imports of solar inverters will receive the stipulated concessional benefits.
The NBR further clarified that manufacturing enterprises intending to install solar plants can import all necessary equipment for such plants by paying only 1 percent customs duty, provided they fulfil the conditions set out in the relevant notifications on capital machinery and related policy.
Commercial importers, meanwhile, will be able to clear eligible consignments on payment of 1 percent customs duty, 7.5 percent advance tax and 5 percent advance income tax. The advance tax and advance income tax will subsequently be adjustable, according to the clarification.
The NBR issued the circular under Section 266 of the Customs Act, 2023.
The clarification is expected to reduce procedural complications at customs points and facilitate faster clearance of equipment required for solar power generation.