The Society of Indian Automobile Manufacturers (SIAM) has welcomed India government’s decision to reduce the GST rate on electric vehicles from the present 12 percent to five percent. The GST council has also announced that tax on EV chargers will be reduced from 18 percent to five percent, effective August 1. The local authorities have also been given GST exemption for the hiring of electric buses by local authorities.
Rajan Wadhera, President, SIAM said, “Government’s vision of increasing electric mobility in the country has been acknowledged by GST council by significantly reducing GST rate on electric vehicles. We are thankful to the GST council for accepting these recommendations which were proposed by SIAM in our white paper which was released last year to promote the growth of electric vehicles in India. Over the years, this will help popularise electric vehicles and increase penetration in the country.”
Wadhera congratulated the government on this bold initiative and pointed out that there is a need for a long term unambiguous EV roadmap. He also mentioned that the automotive industry is currently going through a difficult time and SIAM has requested government intervention to stimulate demand so that the industry can turn around from
the current difficulties.