Government may slash GST on EV battery to 5 %

The GST Council meeting to be held later this month may cut the goods and services tax on lithium-ion batteries to 5 per cent from 18 per cent, bringing them on a par with electric vehicles.

Analysts said India’s EV ambitions may suffer a setback without the rationalisation of the rates on lithium-ion batteries. The council last cut the rate to 18 pecent from 28 per cent in 2018.

With a greater emphasis on the EV ecosystem and more automakers entering the fray, there is a renewed demand for a price parity between batteries and EVs.