The GST Council has reduced the tax on electric cars from 12% f to 5%. The Council also approved the exemption of GST on the hiring of electric buses by local self-governments. The new decision will certainly boost the electric vehicle industry in the country.
The GST Council has also reduced the GST on the charger. The GST on EV chargers has been reduced to 5%. At present it 18%. The decision was taken unanimously. The new tax tariff will be actualized on August 1.
In the Union Budget also some exemption has been declared for electric vehicles. An income tax exemption of 1.5 lakh was declared for those who take a bank loan to purchase electric cars.
#NewsAlert | GST Council has decided to reduce GST rate on electrical vehicles from 12% to 5% and on EV chargers from 18% to 5% from 1st August 2019. GST Council also approved exemption of GST on hiring of electric buses by local authorities: Finance Ministry pic.twitter.com/N1jb2RzXC2
— CNN News18 (@CNNnews18) July 27, 2019