Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday 2 November 2017

Anomaly by Oversight ?



Surely , it cannot be by design !


I am talking of GST rate of 28 % on imported Lithium-ion batteries required for electric vehicles , whereas GST rate on finished EV is fixed @ 12 % !


Consider this “ anomaly “ in the following background :


·         Li-ion batteries make up almost 50 % of the Selling Price of a EV . This means , the battery cost in those 10,000 Electric Cars which EESL ordered last month on TATA / M&M , for Rs 11 lakh each , would be approx. Rs 5.5 lakh !


·         If GST on these imported batteries was reduced to 12 % , the cost of manufacture of EV , would come down by Rs 0.70 lakh .


·         Then @ 12 GST on finished car , price to EESL could have come down by another Rs 8,000 per car , taking the total saving to EESL of Rs 78,000 per car


·         According to one report , EESL plans to purchase some 5.5 lakh Electric Cars over the next 3 years to replace the entire current fleet of Government  . You can calculate the savings !


·         It is another matter that “ Purchasing “ is in itself , a BAD idea !  I have pleaded with EESL to “ Lease “ these cars ( from the manufacturers ) and save thousands of crores of rupees  !


     Read :    To Buyor not to Buy ?  [ 11  Oct  2017  ]

    https://myblogepage.blogspot.com/2017/10/to-buy-or-not-to-buy.html

 


·         It seems , the Government / EESl are “ considering “ the option of buying these cars ( and lakhs of electric rickshaws ) , WITHOUT Li-ion Batteries , in order to bring down the initial investment . Government is hoping that private parties will invest into huge inventory of such batteries and get into “ Battery Swapping “ business ( - hopefully , to offset the absence of battery charging stations ) .

With a GST of 28 % on bare batteries , this battery swapping business is unlikely to take off !


I do hope the next meeting of GST Council expected to be held on 10th Oct , would reduce the GST rate on Li-ion Batteries to 12 %


Oversight can always be overcome !



03  Oct  2017


   

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