Union Finance minister Smt. Nirmala Sitaraman in her maiden budget has announced the reduction of GST on Electric Vehicles from 12% to 5%.
She further said that government already moved GST council to decrease the GST rate on electric vehicles from 12% to 5%. Also to make EVs affordable for consumers government will further additional income tax deduction of Rs. 1.5 Lakh on the interest paid to Purchase the EVs. In total, the customer will benefit Rs. 2.5 Lakhs who purchase the electric vehicles on Road. It means one who buys the electric vehicle on loan will get more tax benefits with the new budget.
The government also allocated Rs. 10,000 Crore for the faster development and adoption of Electric Vehicles. It is also said that this step will attract more investment for manufacturing of E-Vehicles in India and ensure clean and greener energy.