EV penetration in India is losing steam for cars, two-wheelers, and three-wheelers after GST rates for internal combustion engine vehicles were reduced under GST 2.0. As ICE models become more price-competitive, buyers are shifting away from EVs—despite new launches like Maruti’s eVitara. The result is slower EV adoption across multiple segments.
The GST Council’s move to dismantle the “intermediary” clause signals a major shift in India’s indirect tax rules. By aligning domestic provisions with global export standards, the change helps services supplied to foreign recipients qualify as exports. For exporters, this could mean clearer compliance, fewer disputes, and improved competitiveness in overseas markets.
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