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Citing 'disparity', Electric two-wheeler manufacturers call for GST reforms

This is a major concern for the industry, especially for start-ups, as it increases costs and makes it difficult to manage working capital, the industry feels

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Anjali Singh Mumbai

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Electric two-wheeler (E2W) manufacturers are seeking reforms in the goods and services tax (GST) structure as there is a disparity in the GST for two of its categories.

While GST on components is 18-28 per cent, it is 5 per cent for electric vehicles (EVs), and this, according to them, creates an inverted duty structure, blocking up capital for manufacturers. 

It is a major concern for the industry, especially startups, as it increases costs and makes it difficult to manage working capital, feels the industry.

Players emphasised the need for clearer guidelines, streamlined processes, and faster refunds to ensure GST

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