Chennai, Sept. 5 -- The reduction in the Goods and Services Tax (GST) for automobiles powered by internal combustion engine (ICE) while leading to their increased sales due to lower prices, could conversely affect the sales of electric vehicles (EV), said experts.
The Indian government today announced rationalisation and reduction of the GST rates. While the GST rate for EVs has been retained at 5%, the rates for ICE vehicles-two/three/four wheelers and commercial vehicles have been cut ranging from 7% to 13% depending on the class of vehicle. However, there is one exception to the rate reduction/retention -- two-wheelers with a cubic capacity of 350cc and above, the GST has been increased by 9% to 40%.
"The reduction in GST for ICE two w...