GST on Li-ion bat­ter­ies re­duced

Commercial Vehicle - - CONTENTS -

Among the bunch of com­modites whose GST has been brought down from 28 per cent to 18 per cent in­clude Li-ion bat­ter­ies used in EVs. This is ex­pected to help EV man­u­fac­tur­ers to look at elec­tric ve­hi­cles that are com­pet­i­tively priced and are able to per­form bet­ter. Ex­pressed So­hin­der Gill, Di­rec­tor Gen­eral, So­ci­ety of Man­u­fac­tur­ers of Elec­tric Ve­hi­cles (SMEV), that the drop in GST from 28 per cent to 18 per cent marks a cor­rec­tive mea­sure by the fi­nance min­istry to some ex­tent. Li-ion bat­ter­ies sold sep­a­rately con­tinue to at­tract a GST of 16 per cent he men­tioned. Terming the tax on bat­ter­ies as a ma­jor de­ter­rent in bat­tery swap­ping and bat­tery leas­ing, Gill averred, “An EV cus­tomer needs to pur­chase the bat­ter­ies once every four to seven years, and the high rate of GST at 28 per cent was ad­versely af­fect­ing the to­tal cost of own­er­ship. I think, the GST on Li-ion bat­ter­ies should have been kept the same as 12 per cent for EVs. We hope in the next round of de­lib­er­a­tions, the GST coun­cil would cor­rect the taxes in line with what is cur­rently be­ing charged on EVs.”

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