(FE)
The GST Council on Saturday cut rates on electric vehicles (EVs) to 5% from 12% in a move that is expected to align indirect tax structure on such vehicles with the government’s overall push to incentivise manufacturing of non-fossil fuels transport. The 36th Council, which was chaired by finance minister Nirmala Sitharaman, also cut rates on chargers and charging stations for EVs to 5% from 18%. These decision will come into effect from August 1. Further, the apex decision-making body for GST exempted hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities from tax levy. “The proposed reduction in the GST rates on e-vehicles coming on the back of the recent customs duty reduction on such vehicles and their parts signifies the government’s resolve to go green and reduce the carbon footprint,” MS Mani, partner at Deloitte India, said.
