July 3, 2022
1 min read

EV manufacturers laud industry-wide GST reduction

Battery price makes up as much as 50 per cent of an electric vehicle’s cost…reports Asian Lite News

Electric vehicle (EV) manufacturers hailed the GST Council’s decision that EVs with or without battery pack will now be taxed at 5 per cent.

At present, e-vehicles are taxed at 5 per cent while lithium-ion batteries are taxed at 18 per cent.

The decision was taken at the GST Council’s 47th meeting in Chandigarh on June 28-29, chaired by Union Finance Minister Nirmala Sitharaman.

“Electric vehicles, whether or not fitted with a battery pack, are eligible for the concessional GST rate of 5 per cent,” a ministry statement read.

Akshit Bansal, CEO of electric vehicle (EV) charging network provider Statiq, said that the government has declared a clear intention to boost domestic EV adoption and usage by making the industry eligible for a concessional GST rate of 5 per cent.

“This move will encourage the industry to pass on more cost benefits to the users and also lend a necessary push to people who are still looking for incentives to adapt to the EV way-of-life,” Bansal told.

“I welcome this move of industry-wide GST reduction to 5 per cent and thank the government for helping us bridge the gap between the possible adoption of EVs and a real-life rise in its adoption,” he added.

Battery price makes up as much as 50 per cent of an electric vehicle’s cost.

In 2018, the GST rate on lithium-ion batteries was slashed from 28 per cent to 18 per cent.

In December last year, then NITI Aayog CEO Amitabh Kant said the government was working on reducing GST on EV batteries.

ALSO READ-Steve Jobs awarded posthumous Medal of Freedom

Previous Story

RAUK Jeeman 2022: Transmitting the colours of Rajasthan

Next Story

Pak military nod for peace talks with TTP

Latest from Business

Microsoft Cuts Deep

The fresh job cuts come less than two months after Microsoft announced it was laying off more than 6,000 employees…reports Asian Lite News Microsoft is set to cut around 9,000 jobs —

Northeast Is Growth Engine

Scindia also provided updates on the government’s efforts to facilitate the entry of SpaceX’s Starlink service into India. “All due diligence from the Ministry’s side is complete Union Minister for Communications and

India to Empower Global South

India is emerging as a pivotal force in the global transition to clean energy, with Union Minister for New and Renewable Energy, Pralhad Joshi, asserting that the country is empowering the Global

Maruti’s Global Push Breaks Record

June shipments hit 37,842 units, signalling robust global demand Maruti Suzuki India recorded its highest-ever monthly exports in June, shipping 37,842 units and marking a new milestone that highlights the company’s expanding

India Bats for Fairer Global Finance: FM Sitharaman

FM Sitharaman stated that we believe that optimal regulation fosters innovation and stability….reports Asian Lite News India supports reforms to the international financial architecture to enhance inclusivity and equity, including Multilateral Development
Go toTop

Don't Miss

Zypp Electric Expands Fleet

According to the company, the Series C1 funding comprises “$15

iVOOMi Energy bets big on EV with new facility

The investment is expected to increase the facility’s production capability