Govt plans 20-year tax holiday for data centers

Meity’s proposed incentives include an asset-based GST input tax credit.

As long as data center developers satisfy goals for capacity expansion, efficient electricity use, and job creation, the government has suggested a 20-year tax exemption. A new draft of the National Data Center Policy that Business Standard has reviewed and sent to stakeholders for input outlines these incentives.

The draft states that the Ministry of Electronics and Information Technology (Meity) will probably ask the Ministry of Finance to permit input tax credit (ITC) on the goods and services tax (GST) imposed on capital assets, including heat, ventilation, and air conditioning, as well as data center construction.

Leave a Comment