CBIC exempts SWS on EV imports for Indian electric car manufacturing promotion

The CBIC has recently made amendments to its Notification No. 11/2018-Customs, dated February 02, 2018, through Notification No. 20/2024-Customs dated March 15, 2024. This amendment exempts Social Welfare Surcharge (SWS) on Electric Vehicles (EVs) imported under the Ministry of Heavy Industries’ scheme aimed at promoting the manufacturing of electric passenger cars in India.

Under the powers conferred by the Customs Act, 1962, and the Finance Act, 2018, the Central Government has decided to introduce these amendments in the interest of the public. Specifically, the amendment includes the addition of a new item in the Table of the notification, marked as Sl. No. 57. This item pertains to all goods falling under heading 8703 and covers various sub-items related to the Ministry of Heavy Industries’ scheme for the promotion of electric passenger car manufacturing in India.

This exemption from Social Welfare Surcharge (SWS) on imported Electric Vehicles (EVs) is a significant step towards incentivizing the adoption of electric vehicles and promoting the growth of the electric vehicle industry in the country. These amendments aim to encourage manufacturers and consumers alike to contribute to the reduction of carbon emissions and the transition towards sustainable mobility solutions.