GST Council Likely To Discuss Hiking Tax On Used EVs To 18%

The GST Council is considering a proposal to raise the Goods and Services Tax (GST) on used electric vehicles (EVs) to 18%, a significant increase from the current tax rate. The move has generated concerns among stakeholders, including EV manufacturers and consumers, who fear that the price hike could dampen the demand for used electric vehicles. Proponents of the tax increase argue that it aligns with the overall GST structure and will ensure that the EV sector remains competitive. The Council’s discussion is part of broader efforts to rationalize the tax structure and address the concerns of both consumers and businesses in the rapidly growing EV market.