The high-powered GST Council on Saturday decided to reduce the tax rate on electric vehicles (EVs) to 5 per cent from the existing 12 per cent, a move aimed at accelerating the adoption of eco-friendly mobility solutions.
The new Goods and Services Tax (GST) rate on EVs will be effective from August 1, the Finance Ministry said in a statement after the 36th meeting of the GST Council.
Additionally, the tax rate on chargers or charging stations for EVs has been slashed from 18 per cent to 5 per cent.
The council also approved GST exemption for hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities from August 1, the statement said.