Home / Economy / News / GST rate on EVs cut from 12% to 5%; reduced rate effective from August 1

GST rate on EVs cut from 12% to 5%; reduced rate effective from August 1

The GST Council has also approved exemption from GST on hiring of electric buses by local authorities

There's a better answer than electric cars

Premium

Representative Image

2 min read Last Updated : Jul 27 2019 | 2:28 PM IST

The high-powered GST Council on Saturday decided to reduce the tax rate on electric vehicles (EVs) to 5 per cent from the existing 12 per cent, a move aimed at accelerating the adoption of eco-friendly mobility solutions.

The new Goods and Services Tax (GST) rate on EVs will be effective from August 1, the finance ministry said in a statement after the 36th meeting of the GST Council.

The GST rate on all EVs has been reduced from 12 per cent to 5 per cent. Additionally, the tax rate on chargers or charging stations for EVs has been slashed from 18 per

Topics : Goods and Services Tax GST GST Council GST Council meet GST council meeting

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in