The recently slashed GST rates on all electric vehicles (EVs) have come into effect from today. All EVs, small or big, personal or commercial, will be costing 7% less as compared to the day before. The rate cut was announced only five days ago at the 36th GST Council meeting chaired by Union Finance & Corporate Affairs Minister Nirmala Sitharaman and attended by Union Minister of State for Finance & Corporate Affairs Anurag Thakur besides Revenue Secretary Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. In the meeting held on 27 July, the GST rates were cut to 5% from 12% earlier. see news)
As announced in the meeting, the GST rates have also come down from today on chargers or charging stations for EVs. As against 18% earlier, a new rate of 5% has become applicable from today.
Additionally, hiring of electric buses with carrying capacity of more than 12 passengers by local authorities will be completely exempted from GST.