Union Budget 2018: Electronic Vehicles Industry seeks 5% reduction in GST

Ahead of the release of the Union Budget 2018, Electric Vehicles industry has stated a list of measures that the government should incorporate in order to achieve the electric Green vehicle adoptation target. 

The government has sought to achieve the target two years back in Government of India's Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles policy.

The Electronic Vehicles industry seeks a reduction of 5 per cent GST from all Electronic Vehicles and EV Subsystems. 

The nodal body of electric Vehicles, Society of Manufacturers of Electric Vehicles (SMEV) has requested the government to reduce the GST rate to 5 per cent from all elctric vehicles and electric vehicle subsystems. 

The body says that the main factor responsible for less Electric vehicles in the country is the "unreasonably high GST " on it. 

The Director of the Corporate Affairs of SMEV, Mr Sohinder Gill has said that the measures should be implemented immediately to back the government's aim of selling only e-vehicles in the country by 2030 and to help the industry grow fast. 

The SMEV has put forward the following demands for the new Union Budget-

• Reduction of GST to 5% on all EVs and EV subsystems.
• The launch of next phase of FAME Scheme for a longer period of 6 years and its time-bound implementation.
• Rebate on Income Tax for consumer adopting Electric Vehicles.
• Indigenization of EV components.