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

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