GST Council reduces tax rate on Electrical Vehicles

New Delhi: The GST Council on Saturday decided to reduce GST Rate on Electrical Vehicles from 12 per cent to 5 per cent.

In its 36th meeting here today,  the Council also decided to reduce the rate on Electric Vehicle Chargers from 18 per cent to 5 per cent. The new rates will come into effect from August 1, 2019.

The Council also approved an exemption from GST on the hiring of Electric Buses by local authorities.

Finance Minister Nirmala Sitharaman held the meeting through video conferencing.

The auto industry today welcomed the reduction in GST on Electric Vehicles (EVs) and chargers, saying it will help in creating an ecosystem that will encourage faster mass adoption of eco-friendly mobility.

Society of Manufacturers of Electric Vehicles hailed the development, saying it is in line with the government’s steps to promote eco-friendly mobility, even as it sought a similar cut in spare batteries.

Also Read: Hyundai Sonata Hybrid 2020 To Have Solar Roof

 

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