Thought to popularize environmental friendly Electric Vehicle and equally boost the Market in India, GST Council has brought down the GST rate on electric vehicles to 5 per cent from 12 per cent.
The move has come as a shot in the arm for the auto industry which has been pushing for a tax boost to promote the sale of EVs.
The move comes at a time when the government is already in the process of making EVs affordable.
In another move which could significantly alter consumer behaviour in favour of EVs,
the govt is likely to hike the registration charges on petrol/diesel vehicles
The Society of Manufacturers of Electric Vehicles (SMEV) has welcomed the move to slash the GST.