GST rate on EVs slashed to 5 % from 12 %


The Goods and Services Tax (GST) Council, in its 36th meeting, has decided to slash the tax rate on electric vehicles (EVs) to 5 percent from 12 percent. The landmark move is done with the aim to accelerate the adoption of eco-friendly mobility solutions.


The GST council has also reduced the tax rate on EV chargers from 18 percent to 5 percent. The new rates will be made effective from August 1.

The GST exemption for the hiring of electric buses of carrying the capacity of more than 12 passengers by local authorities has also been approved by the council and it will be made effective from August 1, the statement said.

The meeting was chaired by Finance Minister Nirmala Sitharaman. The meeting was held via video conferencing.

The GST council meeting was also attended by the states ministers as members.

“Punjab, Delhi and West Bengal were not fully in support of EV rate-cut proposals over concerns of a loss of revenue,” a government official said.

The government also extended the last date for filing an intimation to avail the option of payment of tax in form GST CMP-02, and filing of details of self-assessed tax in form GST CMP-08 for the June quarter, from July to August.


The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the NBFCs and Insurance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.