48% GST on Hybrid Cars, 5% on EVs Will Remain: Amitabh Kant Confirms

On Tuesday, G20 Sherpa Amitabh Kant emphasised the need to maintain a significant duty difference between electric and hybrid vehicles, including GST on hybrid cars. He stressed that the country should incentivize zero-emission technologies to continue the push toward green mobility.

Speaking at a Mercedes-Benz Research and Development India (MBRDI) event, Kant highlighted the government’s commitment to promoting clean mobility through various policy measures. He noted that the tax on electric vehicles remains at 5%, compared to 48% on hybrids, a policy that will be sustained over time.

Japanese automakers have been lobbying for a reduction in GST on hybrids, arguing that hybrids are cleaner than traditional petrol vehicles and should be incentivised. However, companies like Tata Motors and Mahindra & Mahindra oppose this, advocating for exclusive incentives for zero-emission technologies without concessions for transitional measures.

Kant also revealed the government’s strong focus on boosting battery manufacturing, saying, ‘We are using all policy tools available, including CAFE norms, to drive the electrification of mobility, ensuring India becomes a green mobility leader.’ He warned that missing this shift to cleaner technologies would result in losing a critical opportunity to lead in EV manufacturing.

Additionally, Kant mentioned plans for large-scale electric bus tenders, with 6,000 electric buses already tendered for seven cities, followed by future tenders for 10,000 and 50,000 buses, which will significantly reduce electric bus prices.

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Akash G Varadaraj

Content Writer at Vakilsearch

I'm Akash. G. Varadaraj, an official content writer at Vakilsearch with over four years of experience. I'm here to simplify complex legal concepts into easily accessible articles that even a layman can understand. As a regular contributor to this news portal, I aim to keep you informed in the dynamic world of law, compliance, taxation, and much more. I ensure that you get to know our Vakilsearch expert's take on every piece of news, how it can help, and what you should do.

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