GST Council Slashes Tax On Electric Vehicles

Close on the heels of Union Budget providing tax relief for buying electric vehicles, the GST Council in its 36th meeting on Saturday cut the tax on electric vehicles (EV) from 12 per cent to 5 per cent effective August 1, 2019.

The Council has also slashed rate for EV chargers from 18 per cent to 5 per cent making electric vehicle affordable for the buyers.

The twin rate cuts are set to further boost the EV sector. The Budget on July 5 had proposed Income Tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase electric vehicles.