Government likely to cut 5% GST on electric vehicles

The government is reportedly planning to cut 5% GST on electric vehicles to the boost the sector that is on high priority list of the Modi Government.

A senior government official aware of the development speaking ET said that GST Council is set to take up the proposal at its June 20 meeting. He said “There is a proposal to cut tax rates on EVs among other issues.”

Lower duties will encourage manufacturers to invest in India’s planned shift to electric vehicles in order to try and bring down pollution levels. This comes as Punjab has written to the Centre seeking a review of tax rates.