With the wide installation of solar PV array in respect of other renewable power generation, there is a scope of feeding the surplus power to grid for better and economic power utilisation. The foremost objective of this paper to independent regulation of real and reactive power flow of single stage grid coupled PV system using multilevel inverter. Vector control scheme has been implemented in direct and quadrature reference frame which is synchronously rotating with the frequency of the grid. Two current control loop has been used, one for d-axis and other for q-axis to regulate the current inserted into the grid such that it has low total harmonic distortion and in phase with the grid voltage. In addition to that, a DC voltage control loop has also been implemented to operate the inverter at the desired DC link voltage that is the DC voltage corresponding to maximum power, which is obtained by the MPPT algorithm. Grid coupled inverters have extensive usage in the area of distributed generation and power eminence improvement. The above scheme employs a three-phase three-level Diode clamped multilevel inverter to improve the current injected to grid.