FICCI Seeks GST Cuts On EV Batteries, Charging Services To Boost Affordability

GST Cut on EV Batteries: GST on batteries and charging services needs to be cut to keep electric vehicles competitive and boost customer option, FICCI Electric Vehicle Committee Chair Sulajja Firodia Motwani said on Tuesday.

Speaking at 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 GST Council to rationalise GST taxation on EV-related areas," Motwani said.

Elaborating on demands, she noted, "Currently 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 consumers."

Secondly, GST on batteries should also come down to 5 per cent, Motwani, who is also founder and CEO of Kinetic Green Energy & Power Solutions, ded.

"While EVs attract a GST of 5 per cent, GST on batteries is 18 per cent. request is to reduce it to 5 per cent so that when consumers buy replacement batteries, it is more affordable," Motwani said.

Meeting that se two reforms on GST will help a lot in making EVs more competitive for consumers, she stated.

While welcoming PM E-Drive scheme, Motwani said that with rising demand re is a need to review incentive amounts.

"We believe that because demand is growing, perhaps incentive amounts have to be reviewed so that budget under PM E-Drive scheme overall is enhanced to ensure that total number of vehicles sold in next two years are eligible for incentive," she stated.

She furr said, "We do believe that PM E-Drive has great potential, and it will go a long way in furr accelerating electric mobility."

In October this year, government launched PM E-DRIVE Scheme, with an outlay of Rs 10,900 crore for faster option of electric vehicles, setting up of charging infrastructure and development of EV manufacturing ecosystem in India.

scheme shall be implemented from October 1, 2024, to March 31, 2026.

Motwani also emphasised that EVs should be part of priority sector lending.

"We do believe re's a strong case to allow and to help having affordable financing for EVs that can make it more cost competitive for not just classes, but for masses," she said.

FICCI President and Mahindra Group MD and CEO Anish Shah said electric four-wheelers currently have a 1.5 per cent penetration in India which indicates that "much work is needed".

India has a history of leapfrogging or countries and discussion shifts to requirements for achieving this with EVs, he said.

first requirement is a product that is appealing to consumers, he ded.

Manufacturers in India are developing Born Electric products which will help in option of EVs, Shah noted.

Mahindra will launch its grounds up new electric product range later this month, he said.

"While OEMs (original equipment manufacturers) always like GST on batteries and charging services needs to be cut to keep electric vehicles competitive and boost customer option, FICCI Electric Vehicle Committee Chair Sulajja Firodia Motwani said on Tuesday.

Speaking at 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 GST Council to rationalise GST taxation on EV-related areas," Motwani said.

Elaborating on demands, she noted, "Currently 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 consumers."

Secondly, GST on batteries should also come down to 5 per cent, Motwani, who is also founder and CEO of Kinetic Green Energy & Power Solutions, ded.

"While EVs attract a GST of 5 per cent, GST on batteries is 18 per cent. request is to reduce it to 5 per cent so that when consumers buy replacement batteries, it is more affordable," Motwani said.

Meeting that se two reforms on GST will help a lot in making EVs more competitive for consumers, she stated.

While welcoming PM E-Drive scheme, Motwani said that with rising demand re is a need to review incentive amounts.

"We believe that because demand is growing, perhaps incentive amounts have to be reviewed so that budget under PM E-Drive scheme overall is enhanced to ensure that total number of vehicles sold in next two years are eligible for incentive," she stated.

She furr said, "We do believe that PM E-Drive has great potential, and it will go a long way in furr accelerating electric mobility."

In October this year, government launched PM E-DRIVE Scheme, with an outlay of Rs 10,900 crore for faster option of electric vehicles, setting up of charging infrastructure and development of EV manufacturing ecosystem in India.

scheme shall be implemented from October 1, 2024, to March 31, 2026.

Motwani also emphasised that EVs should be part of priority sector lending.

"We do believe re's a strong case to allow and to help having affordable financing for EVs that can make it more cost competitive for not just classes, but for masses," she said.

FICCI President and Mahindra Group MD and CEO Anish Shah said electric four-wheelers currently have a 1.5 per cent penetration in India which indicates that "much work is needed".

India has a history of leapfrogging or countries and discussion shifts to requirements for achieving this with EVs, he said.

first requirement is a product that is appealing to consumers, he ded.

Manufacturers in India are developing Born Electric products which will help in option of EVs, Shah noted.

Mahindra will launch its grounds up new electric product range later this month, he said.

"While OEMs (original equipment manufacturers) always like asking for subsidies, what we would say is government has done everything it has to do...it is now up to industry to now take this forward and enable transition to electric," Shah stated.