GST on EVs could come down to 5%

India could reduce the goods and services tax (GST) on electric vehicles (EVs) from 12% to 5% to boost the sector. The proposal to this effect is expected to be considered by the GST Council at its June 20 meeting, according to a senior government official. This will be welcomed by global manufacturers who wish to invest in India’s vision to move towards EVs to reduce pollution. A roadmap prepared by the Niti Aayog envisions that all the new vehicle sales by 2030 should be EVs. In comparison to EVs, cars currently face a GST rate of 18-28%.

Subscribe To Newsletter

Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.