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The GST Council decided on Saturday to reduce the tax rate on electric vehicles from 12% to 5% and on EV chargers from 18% to 5% from August 1.
It also cut the Goods and Services Tax (GST) of EV chargers from 18 percent to 5 percent, according to an official statement after the 36th council meeting.
The meeting, chaired by the Minister of Finance, Nirmala Sitharaman, was held by videoconference. The council also approved the GST exemption for contracting electric buses by local authorities.
The GST Council meeting had only one item on the agenda that was to discuss the proposal to reduce GST rates in electric vehicles (EV) from 12% to the current 5%. The GST rate for gasoline, diesel cars and hybrid vehicles is already at the highest level of 28 percent plus the reduction.