Revving Up: GST Cuts Sought to Turbocharge India's E-Mobility

Sulajja Firodia Motwani advocates for reducing GST on batteries and charging infrastructure from 18% to 5% to align with electric vehicles and ease financial burdens on manufacturers and consumers. Highlighting India's e-mobility growth and challenges, she calls for increased support and budget allocations for electric transformation.

In a bid to boost India's electric vehicle sector, Sulajja Firodia Motwani, Chair of FICCI's Electric Vehicle Committee, has called for a reduction of GST on batteries and charging infrastructure from 18% to 5%. This aligns with the supportive 5% GST on electric vehicles, making replacements more affordable for consumers.

Motwani emphasized that the current disparity in GST rates leads to financial inefficiencies for manufacturers. With batteries accounting for 50% of a vehicle's cost, the higher input GST rate strains companies' cash flow and necessitates government refunds. She announced plans to present this demand to the GST Council soon.

Highlighting progress in e-mobility, Motwani noted India's increased EV penetration from 0.9% in 2021 to nearly 8% in 2024, aiming for 30% by 2030. She stressed the need for sustained government support, including increased budget allocations under the PM eDrive scheme, to accelerate this transformative shift.

(With inputs from agencies.)