After having announced several sops for the electric vehicle (EV) sector including income tax exemption and reduction in custom duties for certain components, the government has now reduced the GST rate on EVs from 12% to 5%.
The new rates will be effective from 1st August 2019. The council further approved an exemption from GST on the hiring of electric buses by local authorities.
The Council, which is chaired by Union Finance Minister and has state finance ministers as members, in its meeting last month, had referred the issue relating to Goods and Services Tax (GST) concessions on electric vehicles, electric chargers and hiring of electric vehicles, to an officers committee.
