NEW DELHI, July 27 (Xinhua) -- India's Goods and Services Tax (GST) council on Saturday decided to reduce GST rate on electrical vehicles from 12 percent to 5 percent, officials said.
"Today in 36th GST council meeting held under the chairmanship of federal finance and corporate affairs minister Nirmala Sitharaman, the council recommended GST rate on all electric vehicles be reduced from 12 percent to 5 percent. The GST rate on charger or charging stations for Electric vehicles be reduced from 18 percent to 5 percent," a statement issued by the finance ministry said.
"Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST."
The new rates will come into effect from the beginning of next month.
Reports said the auto industry welcomed the reduction in GST on electric vehicles and chargers, saying it will help in creating an ecosystem that will encourage faster mass adoption of eco-friendly mobility.
The GST council in India is responsible for any revision or enactment of rule or any rate changes of the goods and services in India.
