On Saturday, the GST Council decided to reduce the tax rate on electric vehicles (EVs) to 5 per cent from the existing 12 per cent. The move aimed at accelerating the adoption of eco-friendly mobility solutions.
According to a statement by Finance Ministry, that is circulated after the 36th meeting of the GST Council the new Goods and Services Tax (GST) rate on EVs will be effective from August 1.
The GST rate on all EVs has been reduced from 12 per cent to 5 per cent. Adding value to it,  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 the hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities from August 1, the statement said.
The meeting, chaired by Finance Minister Nirmala Sitharaman, was held via video conferencing. The GST Council, headed by the union finance minister, has state finance ministers as members. It also took certain decisions regarding changes in GST law.
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