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GST on electric vehicles down to 5 per cent from 12 per cent in India

Team OD  | Updated: July 29, 2019, 06:05 PM IST

The GST Council chaired by Union Finance Minister Nirmala Sitharaman has reduced taxes on electric vehicles from 12 per cent to 5 per cent, which will be effective from August 1. Also, the GST on the electric chargers has been brought down to 5 per cent from 18 per cent in order to boost electrification. On the flip side, the GST for petrol, diesel and hybrid are ranging at 28 per cent. Local authorities hiring electric buses with a capacity of over 12 passengers have been exempted from GST. The government is determined to replace two-wheelers below 150cc with electric vehicles in its NITI Aayog project. With this move, we can definitely expect the prices of the EVs on sale to come down by a considerable margin.


When the GST reduction on EVs was proposed in the Union Budget 2019, manufacturers showed their concern about the proposal. Here's a detailed reaction from Tarun Mehta, CEO, Co-founder, Ather Energy. "The government has already moved GST Council to lower GST on EVs from 12 per cent to 5 per cent and the additional income tax reduction is a major boost for end consumers to purchase EVs. It addresses the concern of the upfront cost of purchasing electric vehicles. This is the best example of a consumer-driven change and is also how Ather envisions the EV sector to achieve scale and growth. It now becomes imperative that OEMs chalk out plans that will allow the industry to scale up and meet the demand for compelling products."

Price (Ex-Delhi)
Starts Rs 23.72 Lakhs
Max Power(ps)
Max Torque(Nm)
Tags: electric vehicle  |  EV  |  EVs  |  all electric kona  |  oknawa  |  Ather

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