Currently 18 per cent GST on EV batteries – At present, 18 per cent GST is charged on lithium ion batteries used in electric vehicles in the country. According to CNBC Awaaz report, the government is considering reducing it to 12 percent or 5 percent.
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Explain that currently the rate of GST on lithium ion battery is 18 percent. At the same time, 18% GST has to be paid on battery swapping and charging service. However, GST is only 5 per cent on the sale of the vehicle with the battery. But this creates the problem of inverted duty structure. To overcome this drawback, the GST rate is being considered at 5 per cent.
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At present, the battery is imported from other countries. With the reduction of GST on lithium-ion batteries in the country, its manufacturing will be started in the country. Let us tell you that China is the major exporter of lithium ion battery in the whole world. Which exports a large number of batteries to other countries. In such a situation, if the government reduces the rate of GST on lithium-ion batteries, then the manufacture of lithium-ion batteries in the country will accelerate.