The fledgling electric vehicles sector urgently needs financial support from the government in terms of fast GST refunds, which is most important for this industry because of its inverted tax structure.
Import duty on finished goods is low compared with the duty on raw materials as the GST input on raw materials and other overheads are an average of 18 per cent, wherein the duty on output is pegged at 5 per cent.
Speaking to The Telegraph, Jeetender Sharma, managing director and founder of Okinawa Scooter, said: “The coronavirus spread has impacted all the industry sectors. EVs are a thin slice of the overall automobile industry. As a lot of players import CKD and SKD units, the activities are on hold at present.”
