India Vitality Storage Alliance on Wednesday mentioned batteries, regardless of expertise kind, should be uniformly taxed at 5 per cent GST like electrical automobiles to assist the rising sector. Forward of the Union Price range, India Vitality Storage Alliance (IESA) President Debi Prasad Sprint informed PTI that the federal government might think about defending home cells and battery element producers within the wake of a rise in imports of lithium-ion cells, which has risen to Rs 24,000 crore in FY24 from Rs 18,000 crore in FY23, particularly from China.
There’s a disparity within the tax construction of batteries, he mentioned, including GST for lithium-ion batteries is eighteen per cent, however different chemistries, like lead acid, sodium, and circulation batteries and others, are at 28 per cent. Then again, for electrical automobiles, the GST is 5 per cent.
“So, as an trade, we want assist to this rising sector, and all new applied sciences should be taxed at 5 per cent, and there shouldn’t be any distinction between totally different applied sciences,” Sprint mentioned.
He was responding to a question on IESA’s wishlist within the upcoming Union Price range.
Sprint additional mentioned there’s a want for the federal government to assist makers of battery parts like cathode, anode, electrolyte, separator and copper foils for the ‘Make in India’ marketing campaign for battery cells to achieve success.
“This trade (parts) is an enormous trade, however they can’t develop with out authorities assist as a result of an enormous funding is required. We at IESA interacted with a number of ministries and submitted a request just like PLI of a Rs 9,000 crore assist scheme for this trade,” Sprint added.
Such assist will allow these corporations not solely to produce to Indian gigafactories however they might even have a chance to export to different international locations, he mentioned, including that there’s additionally a necessity for presidency assist for capability constructing and expertise growth for this trade.
When requested if the nascent home trade wanted safety from rising imports from China, Sprint mentioned that with the PLI scheme, the federal government has taken step one to assist Indian cell manufacturing and gigafactories.
The federal government can think about different steps like rising customized responsibility over a time period in order that Indian corporations can have a greater pricing mannequin, he added.
“Within the final two years, in FY23, we noticed round Rs 18,000 crore of import of lithium-ion cells, which has elevated to Rs 24,000 in FY24,” Sprint famous.
