GST on Electric Vehicles in India: Current Rates, Rules, and What Buyers Must Know

The GST rate on electric vehicles in India is 5%. Whether someone is buying an electric scooter, a battery-powered car, or a three-wheeler cargo vehicle, the rate is the same. It does not matter whether the vehicle is for personal use or commercial purposes. The 5% rate applies uniformly across all new EV categories under HSN code 870240.

That said, not everything connected to an electric vehicle is taxed at 5%. The moment attention shifts to the broader EV ecosystem, things get more nuanced. Spare parts, servicing, batteries sold as standalone items, and second-hand EVs each follow a different tax path. This blog covers the full picture: what is taxed, at what rate, and what changed recently.

How Did the GST Rate on Electric Vehicles Come Down to 5%?

Before 2019, electric vehicles in India were taxed at 12% under GST. The government reduced this to 5% at the 36th GST Council meeting held on 27 July 2019. At the same time, EV chargers and charging stations also saw their rate cut from 18% to 5%. The move was deliberate. The government wanted to make clean mobility affordable and push consumers away from petrol and diesel vehicles.

This was not just a symbolic gesture. The gap between the tax treatment of conventional vehicles and electric vehicles widened significantly. Petrol and diesel vehicles were taxed at 28% plus a compensation cess. Dropping EVs to 5% with no cess was a clear policy signal.

Even through the GST 2.0 structural reform of September 2025, when the overall tax architecture was simplified into broadly two primary slabs, the 5% rate on electric vehicles remained untouched. The GST Council reconfirmed this during its 56th meeting, effective 22 September 2025.

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Current GST Rate on Electric Vehicles: Category-Wise Breakdown

Here is how the current GST rates apply across the EV ecosystem as of 2025:

Final Thoughts

The GST rate on electric vehicles in India reflects a deliberate policy choice. At 5%, new EVs are among the lowest-taxed consumer goods in the country. The government has consistently protected this rate even as the broader tax structure evolved. The benefit is real and quantifiable for every buyer comparing an electric vehicle against a petrol or diesel alternative.

That said, the picture is incomplete without understanding the higher taxes on spare parts, servicing, standalone batteries, and charging services. Anyone planning to buy an EV, operate a fleet, or invest in charging infrastructure should account for these rates in their financial planning.

Frequently Asked Questions (FAQs)

Is the 5% GST rate on EVs the same for all vehicle types? 

Yes. The 5% GST rate applies uniformly to all new electric vehicles, whether it is an electric scooter, an electric car, or an electric auto-rickshaw. Commercial and personal EVs are taxed at the same rate.

What is the HSN code for electric vehicles under GST? 

The HSN code for electrically operated vehicles (EV cars) is 870240.

What is the GST on EV chargers and charging stations? 

EV chargers and charging stations, as physical goods, attract 5% GST. However, the service of charging an EV at a public charging station is treated as a service and attracts 18% GST.

What is the GST on EV batteries? 

When a battery is fitted with the vehicle at the time of purchase, it is part of the vehicle supply and taxed at 5%. When sold as a standalone product or leased separately, the battery attracts 18% GST.

What is the GST on EV spare parts? 

EV spare parts and accessories fall under the general goods category and attract 28% GST. They do not enjoy the same concessional rate as the vehicle itself.

What is the GST on EV maintenance and servicing? 

Repair and maintenance services for electric vehicles attract 18% GST on the total service cost.

Is the GST on electric vehicles different from hybrid vehicles? 

Yes. Hybrid vehicles are taxed at a higher rate and are not eligible for the 5% concessional rate. The 5% GST is specifically for battery-operated electric vehicles.

Did the GST 2.0 reform in September 2025 change the rate on EVs? 

No. The 56th GST Council confirmed that electric vehicles will continue to attract 5% GST even under the new two-slab tax structure effective from 22 September 2025.

Is battery swapping service taxed under GST? 

Battery swapping services are treated as a service and attract 18% GST. This is separate from the 5% applicable on the physical battery when sold as part of the vehicle.

About the author

Mehul Jagwani

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Mehul is a seasoned content writer with a passion for simplifying complex accounting and GST topics. With a keen interest in entrepreneurship and business management, he specializes in creating informative and engaging content for themunim.com. His goal is to help businesses understand and implement accounting and GST software solutions effectively. When he's not crafting content, Mehul enjoys exploring new places and spending time with his Golden Retriever.