GST Disparity Hindering EV Transition? New Reports Highlight Necessary Regulation Changes News24 –

Since the government and the Auto industry has been collectively planning an overall shift to EV transport models, a few stipulations seem to be imperative for a change for a better proliferation of Ev vehicles. As per a recent report concerns over the GST on batteries have been raised. As per the report, EV’s with foxed batteries are taxed at 5%,as are  standalone lithium-ion batteries, but the ones used by Gig workers for replacement are taxed a rather profound 118%

The report that has been published by Autocar professional clearly delineates that t the heart of the momentum towards a significant shift to EV market is led by workers. The gig economy is projected to grow by 23.5 million by  2029-30, as per a report By Niti Ayog. But a critical issue that the report brings up front would be the current GST structure on batteries.

While EV vehicles that are sold in the market with Fixed batteries at taxed at 5%, standalone lithium-ion batteries that are often used in battery swapping or for powering E-Rickshaws or replacing the battery at the end of the life are taxed a massive 18%. 

New Findings By The Report

The report clearly showcases the contradiction that every EV user in the market is going through. As per the report, it has become apparent that the major portion of the EV users who have been able to showcase and rather witness the true benefits of EV powertrains are the ones being taxed the highest. While the consumer vehicles that fall short of any such momentum as that of the CV sector get taxed a much lesser price. 

The disparity increases the operating costs of many gig workers and fleet operators who have shifted to EVs and have been able to explore, witness, and also showcase the benefits of the new EV-powered vehicles. Being conducive and having an enabling demeanour towards the battery swapping infrastructure is of profound importance for gig workers as well as the overall shift to EV vehicles. 

EV vehicles are often considered to be synonymous with range anxiety, its one of the most common factors that every buyer deals with while choosing or even considering an EV as their go to vehicle, The battery swapping infrastructure could be a resolute solution for the same issues, that is if the government stays conducive towards it, 

The Report further states that The Government has already taken considerable steps in the right direction. But an Immediate intervention is necessary for a more harmonious shift for gig workers who could be the massive force driving the shift forward.  FAME incentives and PLI schemes have all made EV’s more accessible, but to achieve the goal of 30% EV penetration in new vehicle registrations, the addressal of GST disparity of paramount importance. The disparity could be regarded as a potential deterrent in the overall growth of EV sector.