GST on electric vehicles slashed to 5% from 12%
New Delhi, July 27: The GST Council has brought down the GST on electric vehicles (EVs) to 5 per cent from 12 per cent.
The Council also slashed the GST on EV Chargers from 18% to 5%. The new rates will be effective from 1st August 2019.
GST Council also approved exemption from GST on hiring of Electric Buses by local authorities. The meeting, chaired by Finance Minister Nirmala Sitharaman, was held via video conferencing.
GST rate related changes on supply of goods and services
- The GST rate on all electric vehicles be reduced from 12% to 5%.
- The GST rate on charger or charging stations for Electric vehicles be reduced from 18% to 5%.
- Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.
- These changes shall become effective from 1st August, 2019.
GST rate for petrol, diesel cars and hybrid vehicles, on the other hand, are in the highest bracket of 28 per cent plus cess.