The Government of India has reduced the GST rates on EV battery packs.

The Government of India has reduced the GST rates on EV battery packs.

The Government of India and the GST Council have decided to reduce the GST rate on lithium-ion battery packs from 18% to 5%. The move is the government's latest attempt to increase EV adoption, thereby making EV vehicles much more affordable in India.

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GST on EV battery packs has been reduced.

According to a new resolution issued by the Government of India, the GST on lithium-ion battery packs has been reduced from 18% to 5% in India. The original GST rate in India for EV battery packs was 28%, but the government reduced it to 18% in 2018 and then to 5% now.

When one uses an EV, the battery packs account for half of the total cost of the vehicle. As a result, receiving a GST discount will increase its sales as well as its adoption rate in India. It is worth noting that the GST discount is available for EVs with both included and excluded battery packs, providing a much-needed boost to the EV market.

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The EV market in India has been steadily expanding over the years, owing to the proliferation of manufacturers offering EV solutions. The number of EVs on Indian roads has also increased, and more models, whether cars, bikes, or other modes of transportation, are joining.

The decision was made at the 47th meeting of the GST Council in Chandigarh, which was presided over by Finance Minister Nirmala Sitharaman. According to Akshit Bansal, CEO of Statiq, an EV charging network provider, the move will undoubtedly encourage more people to purchase and adapt to EVs.

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Haryana has reduced the cost of electric vehicles.

In other EV news, the Haryana government has decided to give a 3 lakh discount on EVs priced below INR 40 lakhs and up to 15% on prices up to 70 lakhs. Unlike the GST rate cut on battery packs, the incentives will effectively reduce the price tags on EVs like the Tata Nexon EV Max and Honda City Hybrid by INR 3 lakhs.