Union Budget 2019: The Finance Minister Recommends Reduction Of GST From 12% To 5% On Electric Vehicles

The Finance Minister Nirmala Sitharaman has recommended changes to the Goods Services Tax (GST) council for electric vehicles (EVs). The Government has suggested reducing the GST rate on EVs from the current 12 percent to five percent, in a bid to make the vehicles affordable. In addition, consumers will be provided with an additional income tax deduction of ₹1.5 lakh on the interest paid on the loans taken to purchase electric vehicles. 

The benefits of this would reach the customer once the GST council approves it.