From the 1st of July 2017, the Goods and Services Tax (GST) finally got implemented in India. It is true that this was the most crucial tax reform in India since independence. Much on the same lines the government of India’s target of making India an all electric vehicle nation by the year 2030, would indeed be a major landmark over many years.
Steps taken to boost the Electric Vehicles and Electric rickshaw sector in India
Going by facts there is no denying the fact that some steps have indeed been taken by the government to boost the EV and the electric rickshaw segment as a whole. There has been some work which is being done in terms of infrastructural development required in the sector as a whole. These are in regard to charging facilities for battery operated rickshaws and vehicles. In one of our previous blogs titled “Infrastructure for Electric Rickshaws is Getting Developed in India“, we had in great detail explained what steps are being done in this direction. However in spite of the initiatives certain experts in the sector still feel that much more needs to be done in terms of clear cut long term policy measures as a whole to boost the electric vehicle and electric rickshaw sector.
GST and the electric vehicles sector
The GST bracket in which a particular sector is placed to some extent would provide you with an indication the priority the government has for that sector. Certain priority sectors have been exempted from GST while others have been placed on the lower GST brackets. When it comes to the EV segment the GST Council has set a 12 per cent tax rate for electric vehicles. This is much lower in comparison with 28 per cent plus cess for petrol and diesel cars and hybrid vehicles. However, few key components for EVs are now taxed at 28 per cent compared to just 6 per cent excise in the previous tax regime. Moreover, in certain states prices for EVs have gone up post GST. It is also being claimed by some players in the sector that five states had 0 per cent VAT on electric vehicles and levying 12 per cent GST will increase the cost and negatively impact sales.
However, the industry is consulting the concern and trying to have the matter resolved with the government.
It is great that the government has taken up an ambitious target of making India an all electric vehicle nation by 2030. Some steps have already been taken in this direction. But there is still a long way to go. Some industry players claim that more needs to be done. But the one thing you can be sure of that this is definitely a thrust areas of the government and a lot of development is expected. So in case you build a business in the sector it is poised for big growth. In case you plan to take up a distributorship of electric rickshaws in India, take it from Jezza Motors the leaders in the field.