IESA Calls For Uniform 5% GST On All Battery Technologies Ahead Of Union Budget
(MENAFN- KNN India)
New Delhi, Jan 9 (KNN) The India energy Storage Alliance (IESA) has urged the government to implement a uniform 5 per cent Goods and Services Tax (GST) rate for all battery technologies, aligning with the current tax structure for electric vehicles.
IESA President Debi Prasad Dash emphasised this recommendation ahead of the Union Budget, noting the existing tax disparities where lithium-ion batteries face an 18 per cent GST rate, while other technologies such as lead acid, sodium, and flow batteries are taxed at 28 per cent.
The appeal comes amid rising concerns over increasing battery imports, particularly from China. According to IESA, lithium-ion cell imports have grown significantly, reaching Rs 24,000 crore in FY24 from Rs 18,000 crore in FY23.
To address this challenge, Dash suggested the government could consider implementing gradual increases in custom duties to enhance the competitive position of domestic manufacturers.
The industry body has also advocated for comprehensive support for battery component manufacturers, including those producing cathodes, anodes, electrolytes, separators, and copper foils.
IESA has proposed a INR 9,000 crore support scheme, similar to the Production Linked Incentive (PLI) program, to nurture the domestic component manufacturing ecosystem.
This support, according to Dash, would enable Indian manufacturers to supply to local gigafactories and explore export opportunities.
The organisation has further highlighted the importance of capacity building and skills development initiatives for the emerging battery sector.
While acknowledging the government's initial support through the PLI scheme for cell manufacturing and gigafactories, IESA maintains that additional measures are necessary to establish a robust domestic battery manufacturing ecosystem.
(KNN Bureau)
MENAFN09012025000155011030ID1109073914
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.