Electric Vehicles To Continue With Lowest GST Rates Across All Segments

New set of GST reforms have been announced and they have brought festive cheer to new car and bike buyers across the country. While taxes on mass market cars and bikes have been reduced to 18% from 28%, the GST council has left electric vehicles untouched and they will continue to attract a 5% tax just like earlier. This includes both passenger cars as well as two-wheelers. So as far as green mobility goes, nothing really changes when it comes to the tax structure.

Premium EVs too will continue to be sold with 5% GST

There was speculation before the council meeting that EVs will be put in separate tax slabs based on how they are priced. This included levying 5% GST on EVs priced below Rs. 20 lakh and 18% GST on electric cars priced between Rs. 20 lakh and Rs. 40 lakh. It was also speculated that any EV priced above Rs. 40 lakh could be taxed at a higher 40% rate but the govt chose to continue with a flat 5% rate across all segments.

Also Read: GST Cut To 18%: Hatchbacks, Subcompact SUVs, Mass-Market Scooters And Bikes To Get Cheaper

Electric-two wheeler tax slab has also not changed.

While new GST rates for Petrol and Diesel cars will come into effect from September 22nd, no changes in EV tax slab means that prices will remain unchanged. This signifies centre’s big push towards electric mobility as any increase in taxes could’ve made EVs more expensive, thereby hampering sales in the crucial festive season.