A Letter To Exempt Electric Vehicles From GST Ambit

Written By:

The Society of Manufacturers of Electric Vehicles (SMEV) wrote a letter to Minister Arun Jaitley, requesting that the government should exempt electric vehicles from the ambit of Goods and Services Tax (GST).

A Letter To Exempt Electric Vehicles From GST Ambit

SMEV requested this because the sector significantly contributes in reducing vehicular pollution. In a letter to the Finance Minister, SMEV requested that the government should "consider a special treatment for electric vehicles via an exemption from GST when the GST slabs are determined for the automobile sector."

A Letter To Exempt Electric Vehicles From GST Ambit

SMEV is the association which represents Indian manufacturers of electric vehicles and electric vehicle components. In that request letter, it is said that electric vehicles are adopted by the world markets as they have been recognised as a significant contributor to the reduction of vehicular pollution.

A Letter To Exempt Electric Vehicles From GST Ambit

It added, "Widespread usage of this vehicle is expected to gain significantly in ensuring fuel security, attain saving to the tune of Rs 42,000 crores in crude oil subsidy."

A Letter To Exempt Electric Vehicles From GST Ambit

According to reports, about 80,000 customers have adopted electric vehicles such as two-wheelers, e-rickshaws and small electric cars last year.

A Letter To Exempt Electric Vehicles From GST Ambit

It also said that the industry is just beginning to find its feet in the Indian automobile industry. "It is imperative that the favourable tax structure should continue under the GST regime," it added.

A Letter To Exempt Electric Vehicles From GST Ambit

"GST on electric vehicles should ideally be fully exempted or at best be kept at 5 percent. Anything more than that will certainly increase the prices of EVs and the EV industry that has just started seeing some green shoots will again de-grow and may collapse altogether," it said.

A Letter To Exempt Electric Vehicles From GST Ambit

"Given that the number of electric vehicles sold in the country is a very small fraction of all automobiles sold, the impact of such an exemption would not be burdensome for the exchequer," it added.

Read more on: #auto news
Story first published: Monday, November 7, 2016, 9:50 [IST]
Please Wait while comments are loading...

Latest Photos