‘GST council to take call on tax cut on EV batteries, charging’
The government is cognisant of the auto industry’s demand for reducing GST on electric vehicle batteries as well as charging as a service from 18% to 5%, but the final call will be taken by the GST Council, Tarun Kapoor, Advisor at the Prime Minister’s Office said on Tuesday.
“We understand that taxation is a major issue so that the industry remains viable and competitive,” Mr. Kapoor said at a day-long conference on electric vehicles organised by the Federation of Indian Chambers of Commerce and Industry.
He also urged the auto industry to aim for 100% electric vehicle sales in two wheelers by 2030 alongside the broader target set by the government to achieve 30% EV penetration by 2030 as a percentage of annual sales.
Heavy Industries Minister H.D. Kumaraswamy also backed the industry demand for the GST cut.
“If you give me a representation we will look into it and pursue it with the Finance Ministry,” the Minister said in his address.
