GST rate for electric vehicles slashed to 5 per cent from 12 per cent

PTI

New Delhi: Union Finance Minister Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs Anurag Singh Thakur, during the Goods and Service Tax (GST) council meeting held through video conferencing, in New Delhi, Saturday, July 27, 2019. (PTI Photo)

New Delhi: Union Finance Minister Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs Anurag Singh Thakur, during the Goods and Service Tax (GST) council meeting held through video conferencing, in New Delhi, Saturday, July 27, 2019. (PTI Photo)

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, effective from August 1.

It also slashed the Goods and Services Tax (GST) on EV chargers from 18 per cent to 5 per cent, an official statement said after the 36th meeting of the council.

The meeting, chaired by Finance Minister Nirmala Sitharaman, was held via video conferencing.

The council also approved GST exemption for the hiring of electric buses by local authorities.

(PTI)