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Countdown to Budget: ‘GST tweaks to benefit EV business’
Stakeholders weigh in on the areas of concern that need redressal in the Union Budget
By
migrator
migrator
Chennai
There are various pressing concerns of electric vehicles, which the industry wants to highlight so that they are incorporated in the ensuing Union Budget 2018. Input and output GST be made zero for EVs to make them a preferred choice for short distance commuters, while providing the last mile connectivity.
If the GST is zero, we will have all components for EVs made in India, creating jobs. It will be big boost to Make in India and the manufacturing sector.
It will ensure reliability and quality for EVs. For batteries recycling and refurbishing can be ensured. GST for battery replacement after first use should be 5% (second battery GST is 28% currently).
Anything more than that will certainly increase the prices of EVs (presently, a battery constitutes 50% of the price of EV) and the EV industry that has just started seeing some green shoots will again de-grow and may collapse altogether. Continuation of FAME Scheme till India achieves 100% conversion into electric is achieved.
Coimbatore must be designated as India’s first EV city (as most of the manufacturing plants for EVs are located in the city). Union Budget 2018 must incentivise EV manufacturing plants in the Coimbatore cluster and other cities with manufacturing capabilities.
With the government’s support, Coimbatore can easily be transformed into a model EV city.
Import of any machine or technology for an EV manufacturing plant, should have zero duty. Special incentives for SMEs for undertaking R&D for Lithium-ion battery must be announced. Also for EVs tests and battery recycling units, separate incentives for multiple centres/ cities needs to be announced.
Voice on the street
As a businesswoman working in the costume jewellery sector, I have found that ever since the GST and note ban came into play, retail has taken a humongous hit. It might have been easier for the major corporates and gigantic FMCG companies to survive the onslaught of such a reform. But, in the Budget next week, the Centre seriously needs to consider the plight of small time retailers and SMEs.
It needs to come up with reforms that will make their transition to the digital economy even smoother. Bringing artisans employed in the creation of fashion jewellery under the fold of GST is a huge challenge. And unless there are incentives, this Budget won’t help them.
Parveen Sikkandar, Founder-CEO, Damini Artisans
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