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Input and output GST be made zero for EVs:

Added: (Mon Jan 22 2018)

Pressbox (Press Release) - Input and output GST be made zero for EVs: SMEV (South Chapter)


19th January, 2018, New Delhi; Hemalatha Annamalai, South Chapter Chief, SMEV (Society of Manufactures of Electric Vehicle) and CEO, Ampere Vehicles Private Ltd. said, "On behalf of the EV industry, there are various pressing concerns of electric vehicles, which the industry wants to highlight so that they are incorporated in the ensuing Union Budget 2018."

The demands of the EV industry are as follows:

* Input and output GST be made zero for EVs to make them a preferred choice for short distance commuters, while providing the last mile connectivity. If the GST is zero we will have all components for EVs made in India, creating jobs. Also it will be big boost to make in India and manufacturing sector. Added advantage is this move will ensure reliability and quality for EVs. For batteries recycling and refurbishing can be ensured.

* GST for battery replacement after first use should be 5% (second battery GST is 28% currently). Anything more than that will certainly increase the prices of EVs (presently, a battery constitutes 50% of the price of EV) and the EV industry that has just started seeing some green shoots will again de-grow and may collapse altogether.

* Continuation of FAME Scheme till India achieves 100% conversion into electric is achieved.

Coimbatore must be designated as India's first EV city (as most of the manufacturing plants for EVs are located in the city). Union Budget 2018 must incentivise EV manufacturing plants in the Coimbatore cluster and other cities with manufacturing capabilities. With the govt. support, Coimbatore can easily be transformed into a model EV city.

* Import of any machine or technology for an EV manufacturing plant, should have zero duty.

* Special incentives for SMEs for undertaking R&D for Lithium-ion battery must be announced. Also for EVs tests and battery recycling units, separate incentives for multiple centres/ cities needs to be announced.

"Given that the number of electric vehicles sold in the country constitute a very small fraction of all automobiles sold, the impact of tax exemption coupled with added incentives, will not be burdensome for the exchequer," Hemalatha added.

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