I welcome the reduction in GST rate for electric vehicles: Power Minister RK Singh

The recent reduction of GST rate on electric vehicles will go a long way in making our cities pollution-free, said Power Minister RK Singh on Saturday.

"I welcome this decision of GST Council. It will go a long way in promoting Electric Vehicles in India and making our cities pollution-free," said RK Singh.

The Goods and Services Tax (GST) Council on Saturday recommended a reduction in GST rate on all-electric vehicles from 12 per cent to 5 per cent.

It also recommended a reduction in GST rate for charger or charging stations from 18 per cent to 5 per cent.

The hiring of electric buses with a seating capacity of more than 12 passengers by local authorities should be exempted from GST, the council said.

These changes will be effective from August 1, according to an official statement.

India is making a big push for electric vehicles to control pollution and take a lead in the emerging industry. The government wants to have only electric three-wheelers operating in the country by 2023 and only electric two-wheelers by 2025.

The council meeting was presided over by GST Council Chairperson and Finance Minister Nirmala Sitharaman.