The GST Council on Saturday slashed GST on electric vehicles (EVs) to five per cent from 12%. It also reduced the GST on EV chargers from 18% to five per cent. The new rates will be effective from 1st August 2019.

The council further approved exemption from GST on hiring of electric buses by local authorities.Ahead of the meeting, many states have expressed concerns regarding this rate reduction. The states voiced their concerns, citing huge investment that has been made already in the existing diesel and petrol-fueled vehicles. They have also cited that there is an existing slowdown in the auto sales numbers so the government should take a calibrated view on this.