The GST Council may consider reducing the Goods and Services Tax (GST) on components used in Small Modular Reactors (SMRs) from the current 18% to 5%, sources said. The move is aimed at supporting India’s nuclear expansion plans and encouraging greater private sector participation in the industry.
According to sources, the Department of Atomic Energy has submitted a proposal seeking a lower GST rate for SMR components. The proposal was prepared in consultation with the Ministry of Power and has also been sent to the Ministry of Finance for consideration.
At present, components used in SMRs attract an 18% GST rate. A reduction to 5% could help lower project costs and make the development of small modular nuclear reactors more commercially viable.
SMRs are emerging as an important part of India’s strategy to expand its nuclear power capacity. The country currently has around 8.78 GW of installed nuclear power capacity, which is expected to rise to nearly 22 GW by 2031-32.
India has set an ambitious target of taking its nuclear power capacity to 100 GW by 2047. The government enacted the SHANTI Act, 2025, as part of its efforts to support this long-term expansion and open the nuclear energy sector to greater private participation.
A lower GST burden on SMR components could therefore support investment in the sector while helping India accelerate the development of nuclear projects. The proposal, however, will have to be considered and approved by the GST Council before any change in the tax rate is implemented.
