Tax on Electric vehicles in India

In India, the Goods and Services Tax (GST) on electric vehicles (EVs) is currently set at 5%, which is significantly lower than the GST on petrol and diesel vehicles. This lower tax rate on EVs is aimed at promoting the adoption of electric mobility in the country.

Additionally, the Indian government also offers various incentives and subsidies for the purchase of electric vehicles, such as the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme. Under this scheme, customers can avail incentives of up to Rs. 15,000 for electric two-wheelers and up to Rs. 1.5 lakh for electric cars.

Tax on electric vehicles in india -

Furthermore, some state governments in India also provide additional incentives and exemptions on road tax and registration fees for electric vehicles to promote their adoption.

It is important to note that the tax rates and incentives may vary depending on the location and policy changes by the government.