Electric vehicles: India may slash GST on lithium-ion batteries to 5%

To give a boost to green mobility plans, India may cut the goods and services tax (GST) on lithium-ion batteries and bring them on par with taxes on electric vehicles (EVs), a media report said on Thursday.

According to a Livemint report, discussions have already begun on how to proceed with the plan, which is a crucial step in making India a global manufacturing hub for EVs. The government is expected to develop the final policy in around three months, the report added.

At present, e-vehicles are taxed at 5 per cent, while lithium-ion batteries are taxed at 18 per cent.