In a yet another major GST classification dispute that has reached the courts, this time questioning the very nature of Renewable Energy Certificates (RECs) and whether they should be subject to Goods and Services Tax (GST).

Leading renewable power companies — including Global Energy, Wind World Resources, Wind World Infrastructure, Vaayu Renewable and Vaayu Infrastructure — have challenged tax demands initiated by multiple state GST authorities, placing a critical clean-energy compliance instrument at the centre of contentious legal debate.

The Delhi High Court is currently hearing the petitions, which argue that REC trading should not attract GST — a stand that counters the notices issued by authorities in Gujarat, Tamil Nadu, Andhra Pradesh and Karnataka treating REC procurement as a

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