Central government notifies reduction in GST on Li-ion batteries

The central government has notified a reduction in the applicable rate of the goods and services tax (GST) on lithium-ion (Li-ion) batteries from 28 per cent to 18 per cent, effective from July 27, 2018. The reduction in the GST rate is likely to encourage the expansion of electric vehicles across the country. The GST on fuel cell vehicles has also been reduced from 28 per cent to 12 per cent.