IESA President Calls for Lower GST on Batteries in Union Budget 2025

By A Staff Reporter

New Delhi, January 4 — Ahead of the Union Budget 2025, the President of the India Energy Storage Alliance (IESA), Debi Prasad Dash, has called for a revision in the Goods and Services Tax (GST) rates for different types of batteries. Highlighting the disparity in current tax structures, Dash pointed out that lithium-ion batteries are taxed at 18%, while sodium, lead-acid, and other batteries attract a higher GST rate of 28%.

"As an industry, we need to support this emerging sector at 5% for all batteries," Dash said, emphasizing the need for equal tax treatment across all battery technologies.

The energy storage sector is pivotal to India’s transition to renewable energy, with a growing demand for reliable, sustainable energy storage solutions. Dash’s request comes as the government is expected to make key decisions in the upcoming budget to foster innovation and support the clean energy industry.

Reducing the tax burden on energy storage technologies like lithium-ion batteries could significantly enhance their affordability and accessibility, driving widespread adoption. Industry stakeholders are hopeful that the Union Budget will include favorable provisions to boost India’s energy storage capabilities, ensuring progress towards a greener and more sustainable future.