Electric vehicle (EV) manufacturers on Friday hailed the GST Council’s decision that EVs with or without battery pack will now be taxed at 5 per cent. At present, e-vehicles are taxed at 5 per cent while lithium-ion batteries are taxed at 18 per cent.
The decision was taken at the GST Council’s 47th meeting in Chandigarh on June 28-29, chaired by Union Finance Minister Nirmala Sitharaman.

“Electric vehicles, whether or not fitted with a battery pack, are eligible for the concessional GST rate of 5 per cent,” a ministry statement read.

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