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BU1003 Economics for Sustainable Business : Goods and Services Tax

Based on the news on “Solar energy storage manufacturers want lower GST levy on 
batteries”, develop a critical response to the following questions: 
1. Critically analyse the impact of lowering the Goods and Services Tax (GST) levy on batteries from 28% to 5% on battery market in India, all else being equal. (Tips: please analyse the impact on market outcome in terms of price, quantity, consumer and producer surplus, etc.)
2. Critically analyse the impact of lowering the GST on batteries from 28% to 5% on Electric Vehicle (EV) market in India. (Tips: rechargeable battery is an input for EV. Please analyse the impact on market outcome in terms of price, quantity, profit in the short and long run.)
3. Critically analyse the impact of lowering the GST on batteries from 28% to 5% on petrol vehicle market in India. 
4. Does the proposal of lowering GST on batteries by solar energy storage manufacturers help the government’s push towards reaching a 100 per cent Electric Vehicle (EV) nation by 2030? Do you think such a proposal should beconsidered by Minister of State (Independent Charge) for Power, Coal, New & Renewable Energy?

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