Prime Minister Narendra Modi led NDA government continues to push for its clean mobility initiative in the country. Adoption of electric vehicles (EVs) yet again topping the government’s development agenda! After announcing the tax rebates of up to Rs 1.5 lakh on interest paid on loans to buy EVs while presenting its union budget, the government has slashed the goods and services tax (GST) rate on the EVs from 12 per cent to the lowest slab of 5 per cent at the 36th meeting of the GST Council. Further, with the aim of expanding the EV ecosystem, the government has decided to reduce the GST rate on EV charger or charging stations from 18 per cent to 5 per cent.
The automobile and the associated industries have lauded the GST Council’s decision to reduce GST on EVs and chargers. Welcoming the government decision, Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV), said, “The government is lately showing very clear intentions of promoting EVs and GST reduction is one such measure in line with the series of actions taken by the government in the last few months.” He feels, with the 7 per cent reduction in GST, the gap between prices of EVs and internal combustion (IC) engine vehicles will be reduced.
Earlier, to boost electric mobility and increase the number of EVs in commercial fleets, the government announced an outlay of Rs 10,000 crore for second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME 2) scheme. So, India’s road to electric mobility is only getting smoother.