“Green hydrogen made in India, for the world.”
Lower tax, cleaner energy, stronger exports.
GST Cut on Electrolysers to 5% Powers India’s Green Hydrogen Ambitions. The GST Council has reduced tax on electrolysers and related equipment from 18% to 5%, a move expected to significantly cut green hydrogen production costs. Electrolysers account for 30–40% of the cost of producing hydrogen, and the reduction could make India’s clean fuel more competitive for industries such as refineries, fertilisers, shipping, and chemicals. The reform comes as India accelerates its National Green Hydrogen Mission, targeting 5 million tonnes of annual output by 2030 and ₹19,744 crore in incentives for manufacturing and production subsidies. Analysts estimate green hydrogen costs could fall to ₹260–310 per kg in the coming years, strengthening India’s export edge in global markets. With major state-backed projects underway in Andhra Pradesh, Tamil Nadu, and Haryana, the GST cut will ease capital costs, unlock demand, and bolster India’s credentials as a low-carbon fuel hub.