EV players seek GST cut on batteries, charging services to boost adoption
GST on batteries and charging services needs to be cut to keep electric vehicles competitive and boost customer adoption, FICCI Electric Vehicle Committee Chair Sulajja Firodia Motwani said on Tuesday.
Speaking at the sidelines of FICCI National Conference on EVs here, she also stressed enhancing PM E-Drive corpus to support enhanced sales of EVs.
"We would be making a recommendation to the GST Council to rationalise the GST taxation on EV-related areas," Motwani said.
Elaborating on the demands, she noted, "Currently the GST on charging services is still 18 per cent which we would request to bring down to 5 per cent so that charging becomes more affordable to the consumers." Secondly, the GST on batteries should also come down to 5 per cent, Motwani, who is also the founder and CEO of Kinetic Green Energy & Power Solutions, added.
"While EVs attract a GST of 5 per cent, GST on batteries is 18 per cent. The request is to reduce it to 5 per cent so that when consumers buy replacement batteries, it is more affordable," Motwani said.
Meeting that these two reforms on GST will help a lot in making EVs more competitive for the consumers, she stated.
