Mumbai, Oct 5: The GST Council’s fitment committee has rejected the industry’s proposal for the reduction in the goods and services tax (GST) rate on electric vehicles (EV) batteries, as per a report by CNBC-TV18. The EV industry had proposed a reduction in GST from 18 percent to 5 percent, however, the council has rejected the same.
The GST Council’s fitment committee consists of revenue officials from both the Centre and states and is of the view that lithium-ion batteries have numerous uses in mobile phones, portable electronics, and electric vehicles amongst others, as per sources.
What is also to be noted is that fully-built EVs are subjected to 5 percent GST while lithium-ion batteries and charging stations fall under the 18 percent GST bracket.
