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Press Release

Date: July 27, 2019
Subject: GST Rate Reduction and Incentives to Promote Electric Vehicles
Description:

The press release issued by the Ministry of Finance on 27 July 2019 outlines key decisions taken during the 36th meeting of the GST Council, chaired by the Union Finance Minister, aimed at promoting the adoption of electric vehicles (EVs) and supporting related infrastructure. The Council recommended a significant reduction in the GST rate on all electric vehicles from 12% to 5%, and a similar reduction in the GST rate on chargers or charging stations for electric vehicles from 18% to 5%, making EVs more affordable and encouraging investment in charging infrastructure. In addition, the hiring of electric buses with a seating capacity of more than 12 passengers by local authorities has been fully exempted from GST, providing a boost to clean and sustainable public transportation. All these rate-related changes were announced to be effective from 1 August 2019. The press release also highlights certain compliance-related relief measures, including extensions of due dates under the composition scheme, such as the deadline for filing intimation in FORM GST CMP-02 by service providers and the due date for furnishing FORM GST CMP-08 for the quarter April to June 2019. The release clarifies that these recommendations are presented in simple terms for public understanding and will be legally enforced through subsequent notifications and circulars.

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