Insta
GST Council Cuts Tax Rates On Electric Vehicles, Chargers To 5 Per Cent, No GST On Hiring Of EVs For Public Transport
Swarajya Staff
Jul 27, 2019, 02:39 PM | Updated 02:39 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The Goods & Service Tax (GST) Council on Saturday decided to lower the duty on all electric vehicles (EVs) and the charger for such vehicles from 1 August.
According to a statement by the Finance Ministry, the GST rate on EVs will be reduced to 5 per cent from 12 per cent. A lower 5 per cent tax rate on chargers is applicable to charging stations too.
Currently petrol and diesel based automobiles attract GST at the rate of 28 per cent, besides a cess.
The GST Council also exempted hiring of electric buses by local authorities from tax. The exemption will cover buses with a carrying capacity of more than 12 passengers. The decision is likely to make EVs a popular and viable option for public transportation.
The GST rate cuts follows closely on the heels of major steps announced in the Union Budget 2019-20 provides to boos the electric vehicle adoption.
Finance Minister Nirmala Sitharaman, in her maiden Budget on July 5, had said that the government will provide an additional income-tax deduction of ₹1.5 lakh on the interest paid on loans taken for purchase of EVs. This amounts to a benefit of around 2.5 lakh over the loan period to the taxpayers who take loans to purchase electric vehicle.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.