Published On: Fri, Jul 26th, 2019

GST Council slashes rates for e-vehicles

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The GST Council slashed down tax rates on electric vehicles and chargers on Saturday and it will be applicable from August 1.

The federal indirect tax body reduced the rates to 5 percent for electric vehicles and also for electric vehicle chargers. The earlier rates were 12 percent and 18 percent respectively.

The Council also zeroed the tax for local authorities for the hiring of electric buses, which can carry more than twelve people. However, the charging stations will be charged 5 percent tax on chargers to be installed at the facility.

The move is based on the policy to make availability of electric vehicles and minimize dependence on fossil fuels for transportation.

India is taking leadership on contributing to global efforts on cutting down carbon emissions. The country has vowed to reduce emissions by about 35 percent by 2030 compared to what it was in the year 2005.

Energy policy of the country meanwhile is putting efforts on adding renewable and less polluting sources in the energy mix.

GST Council slashes rates for e-vehicles

Currently the share of e-vehicles is negligible in India. The government is seeking to accelerate production of such vehicles.

In the Financial Year 2019-20 union budget Finance Minister Nirmala Sitharaman announced tax relief for e-vehicles purchase.

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- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade. He can be contacted at

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