Electric vehicle industry resents 12 percent GST

Under the Goods and Service Tax (GST) scheme which is scheduled for 1st July, Electric Vehicle industry has been kept at 12 percent. Ayush Lohia, CEO, Lohia Auto Industries said “Keeping the Electric vehicle industry at 12 percent tax band can prove to be harmful for this industry. The reason being that states such as Rajasthan & Uttrakhand already have zero per cent VAT on Electric Vehicles; in such a scenario levying 12 percent GST on this industry will negatively impact sales and impose a burden on consumers and dampen demand as the cost will go up by 12 percent”. It will also increase our production cost. For an initial 3-4 years the government should have in fact given a short term relief. Indeed they should have given a complete waiver off on Electric vehicles as to give a sales push, consumer experience and help built a customer base.