EVs to continue at 5% GST rate as Council opts for clean mobility push

The Goods and Services Tax (GST) Council has decided to retain the concessional 5% GST rate on electric vehicles (EVs), a major relief for India’s clean mobility push amid the sweeping tax overhaul under “GST 2.0.”

Under the new two-slab structure — 5% for essentials and 18% as the standard rate, along with a 40% bracket for sin and luxury items — there had been speculation that premium EVs could be shifted to higher slabs. However, the Council clarified that all categories of EVs, whether mass-market or luxury, will continue under the 5% rate with no additional cess.