The GST Council meeting recently held in Chandigarh presided over the Finance Minister Nirmala Sitharaman has agreed to reduce the service tax on lithium ion batteries from 18 per cent to 5 per cent. This decision will bring cheer to majority of electric 3wheeler OEMs and companies offering batteries as service.
Welcoming this move Dr Akshay Singhal, CEO & Co-founder, Log9 Materials said that The government's initiative to offer a favourable GST slab for EVs sold without batteries is a welcome move. "This makes new BAAS (Battery as a service) models such as Battery on Lease, Battery Swapping, etc. more viable, hence making EVs more affordable for customers" Singhal said.