On the fine morning of 18th July, the GST council releases the revised GST rates on Goods after 2 days of discussion.
However, the percentage of GST revenue in taxes was at a record high, to increase the revenue higher Indian Government need to do this.
.This increment will directly hit the common people’s life because many daily grocery items will get more costly now.
But taxes on li-ion batteries are reduced from 18% to just 5%.
Right now the government is bullish on electric vehicles and no matter what; the government will make EVs more price friendly, to increase their adoption.
In an electric vehicle its battery is worth about 50% of its whole price, and reducing GST in it can highly impact EV prices.
. No matter how much we scream about Indian battery technology, eliminating li-ion batteries from EV’s will take some time.
Also this isn’t the first time people government did this price slash, in 2018 the li-ion batteries had 28% which is now reduced to just 5%.