On July 27, 2019 the high-powered GST Council decided to reduce GST on electric vehicles to 5 per cent from 12 per cent. It also slashed the GST on EV chargers from 18 per cent to 5 per cent. The new rate has been made effective from August 1, 2019. The EV industry is now waiting for similar reductions in the spare parts and batteries from the present level of 18 per cent.
In addition, to give a further push to clean mobility in public transportation, the Department of Heavy Industry (DHI) has approved the sanction of 5,595 electric buses for 64 cities for intra-city and intercity operation under FAME India scheme phase II. DHI had invited EoI from states for submission of proposal for deployment of electric buses on operational cost basis.
