A Dynamic Level Shift Control Scheme (DLSC) is proposed to improve efficiency by reducing the losses in the switching devices. In this scheme, a hysteresis comparator is used to compare the instantaneous loading with the loading threshold set by the user. This threshold is decided based on the power loss such that, when the operating conditions cause more losses, a three-level-inverter Space Vector Control (SVPWM) is implemented while when the losses are less than the desired threshold, the control switches to two-level control, hence reducing the losses in the neutral legs. The proposed control has been implemented in a GaN based T-type traction inverter.