Electric Vehicles to Get Cheaper, GST on EVs Slashed From 12% to 5%
The Goods and Service Tax (GST) Council on Saturday slashed the tax rates on electronic vehicles (EVs). The tax was brought down to five per cent from the existing 12 per cent. The new tax rate will be effective from August 1, 2019. The meeting chaired by Finance Minister was held via video conferencing.
New Delhi, July 27: The Goods and Service Tax (GST) Council on Saturday slashed the tax rates on electronic vehicles (EVs). The tax was brought down to five per cent from the existing 12 per cent. The new tax rate will be effective from August 1, 2019. The meeting chaired by Finance Minister was held via video conferencing. Electric Vehicles Becomes Cheaper After Budget 2019: Electric Cars You Can Buy To Avail Income Tax Rebate in India.
It also recommended a GST reduction on charger or charging station from existing 18 per cent to five per cent. This development comes at a time when the Centre is already in the process of making electric vehicle affordable. Budget 2019: Electric Vehicles to Become Cheaper in India, Cars You Can Buy to Avail IT Rebate.
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This move will encourage the adoption of electric vehicles. According to reports, the government is also likely to hike the registration fees on petrol and diesel vehicles, to accelerate the sale of EVs. Govt Proposes Scrapping of Vehicles Older Than 15 Years to Promote Electric Vehicles.
India is making a big push for electric vehicles to control pollution and take a lead in the emerging industry. The government wants to have only electric three-wheelers operating in the country by 2023 and only electric two-wheelers by 2025.
As per the data, the share of electric vehicles in the country is almost negligible at the moment. The government is trying to push production through incentives. Finance Minister Nirmala Sitharaman in her maiden budget announced tax relief on purchase of EVs.
(The above story first appeared on LatestLY on Jul 27, 2019 02:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).