The Union Ministry of Finance has clarified that EVs, with or without batteries, will be taxed at a single rate of 5 percent
In June this year, during the GST Council chaired by Union Finance Minister Nirmala Sitharaman, the government had reduced the tax rate on lithium-ion batteries from 18 percent to 5 percent, which is the lowest tax band.
"Electric vehicles, whether or not fitted with a battery pack, are eligible for the concessional GST rate of 5 percent," a ministry statement read. Earlier in 2018, the government had reduced the GST on EV battery packs from 28 percent to 18 percent.
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