- The GST Council’s fitment committee has rejected the proposal to reduce the GST rate on electric vehicle (EV) batteries from 18% to 5%.
- The committee believes that lithium-ion batteries have multiple uses, including in mobile phones, portable electronics, and EVs.
- Currently, built-up EVs are subject to a 5% GST, while lithium-ion batteries and charging stations are charged at 18%.
- Union Minister Nitin Gadkari has encouraged the auto industry to focus on alternate fuels and EVs, stating that companies that haven’t transitioned to EVs have seen a drop in market share.
- The Ministry of Heavy Industries has announced modifications to the FAME II scheme, reducing the subsidy on electric two-wheelers and the maximum subsidy cap.
- The government has not yet decided on the rollout of FAME III and its impact on the decreased subsidy scheme for EVs.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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