Government of India slashed GST rates on EV battery pack

Main Image
  • Like
  • Comment
  • Share

The Government of India and the GST Council have decided to bring down the GST rates on lithium-ion battery packs from 18% to a mere 5%. The move comes as the government’s another attempt to enhance the EV adoption rate thereby making EV vehicles much cheaper to buy in India.

GST on EV battery packs slashed

According to the Government Of India’s new resolution, the GST on battery packs made up of lithium-ion has been slashed from 18 percent to five percent in India. The original GST rate in India for EV battery packs was 28 percent, however, the government reduced it to 18% in 2018 followed by 5% now.

As one uses EV, the battery packs constitute half of the total price tag on these vehicles. Thus, getting a GST discount will boost its sales as well as its adoption rate in India. Note that the GST discount is available for EVs with both battery packs included and exclusion thereby giving the EV market a much-needed boost.

The EV market in India has been continually growing over the years given that many manufacturers have mushroomed with their EV solutions. The number of EVs on Indian roads has increased as well and more models are joining, be it cars or bikes, or other modes of transport.

The decision was taken at the 47th meeting of the GST Council in Chandigarh and was chaired by Nirmala Sitharaman, Finance Minister. According to Akshit Bansal who is the CEO of Statiq, an EV charging network provider, the move will surely push more people to buy EVs and adapt to them.

EV cars priced slashed in Haryana

In different news regarding EVs, the Government of Haryana has decided to give a discount of 3 lakhs on EVs priced below INR 40 lakhs and as much as 15% on prices up to 70 Lakhs. Although available for the short term unlike the GST rate slash on battery packs, the incentives will effectively reduce the price tags on EVs like the Tata Nexon EV Max and Honda City Hybrid by INR 3 lakhs.

Related Articles

ImageInfinix NOTE 40 5G Review: Features, Flaws, and Everything in Between

When was the last time you saw wireless charging on a phone under 20,000 rupees? Never, right? Well, that’s where the Infinix NOTE 40 steps in. Infinix is aiming to shake things up with a 120 Hz AMOLED display and wireless charging in the budget segment. It’s a first in this price range, according to …

ImageBudget 2019: Govt Pushes for Semiconductor Fabs and Lithium-ion Battery manufacturing in India

Finance minister Nirmala Sitharam just introduced the Finance (No.2) Bill, 2019 in the lower house. The first budget of the second Modi-led government introduced some nifty reforms to boost manufacturing in India. Further extending the make in India initiative, GOI has laid out a plan to bring next-generation technology and also Semiconductor fabrications to India. …

ImageOppo phones price list after GST hike announcement

After the production halt due to coronavirus epidemic, the Smartphone industry in India is jolted by GST hike. In the last GST council meeting, the government decided to hike GST tariff on mobile phones by 50 per cent. As per new GST slabs, smartphones will incur 18 percent GST effective from April 1. Now, most …

ImageBWM i5 EV Debuts In India With A Claimed Range Of 516 Kilometers: Check Details And Price Here

The German automaker BMW has launched the BMW i5, an electric sedan in India. With a sporty look and a capable drivetrain, the car costs over a crore in India (ex-showroom price). Check out more details about its design, exterior, interior, drivetrain, and battery pack here. The BMW i5 is based on the new-gen 5 …

ImageOPPO F27 Pro+ 5G: India’s First Super Rugged Smartphone

OPPO F27 Pro+ 5G is the talk of the town as it is India’s first super rugged monsoon-ready phone. It can handle whatever the weather throws at it. OPPO’s new poster star has an IP69 rating, a 360-degree armor body, and more. Packed with top-of-the-line features, and ColorOS14 it’s a perfect blend of performance and …

Discuss

1 Comment
User
shivakumar
Anonymous
1 year ago

GST 5% on lithium-ion battery applicable if we use for EV’s or for all purposes…. can you share the relevant notification.

Reply