Sale of New EVs taxable at 5% GST, Used EVs between Individuals to Remain GST Exempt: FM Clarifies

The GST Council clarified that the sale of electric vehicles (EVs) between individuals will remain exempt from GST. However, the sale of EVs through dealers will continue to be subject to GST. This decision ensures that transactions involving the private sale of EVs will not incur additional tax burdens, promoting the adoption of EVs among consumers. The clarification is expected to support the growing electric vehicle market by reducing the overall cost of ownership for buyers engaging in private sales. This decision also aligns with the government’s goal of promoting environmentally friendly transportation options and transitioning towards cleaner energy solutions.