Important keyword: GST Notification 12/2019, EV GST rate reduction, electric vehicle tax India, EV charger GST, Notification 01/2017 amendment,
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[F.No.354/47/2018-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 31st July, 2019
Notification No. 12/2019 - Central Tax (Rate): which seeks to reduce the GST rate on Electric Vehicles, and charger or charging stations for Electric vehicles .
[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017, namely:-
In the said notification, -
- in Schedule I - 2.5%,-
- after serial number 234A and the entries relating thereto, the following serial number and entries shall be inserted, namely: -
| “234B | 8504 | Charger or charging station for Electrically operated vehicles”; |
- after serial number 242 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -
| “242A | 87 | Electrically operated vehicles, including two and three wheeled electric vehicles. Explanation .- For the purposes of this entry, “Electrically operated vehicles” means vehicles which are run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and shall include E- bicycles.”; |
- in Schedule II - 6%, serial number 206 and the entries relating thereto shall be omitted;
- in Schedule III - 9%, against serial number 375, in the entry in column (3), after the word “inductors”, the words “, other than charger or charging station for Electrically operated vehicles” shall be inserted.
2. This notification shall come into force on the 1st August, 2019.
(Gunjan Kumar Verma)
Under Secretary to the
Government of India
Note: - The principal notification No.1/2017-Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017 and last amended by notification No. 24/2018-Central Tax (Rate), dated the 31st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1261(E), dated the 31st December, 2018.
📚 Frequently Asked Questions (FAQs): Notification No. 12/2019 - Central Tax (Rate)
Q1: What is Notification No. 12/2019 – Central Tax (Rate)?
Answer:
Notification No. 12/2019 – Central Tax (Rate) reduces GST on electric vehicles and EV chargers/charging stations to 5%, amending Notification No. 01/2017 to promote electric mobility in India.
Q2: From which date is Notification No. 12/2019 applicable?
Answer:
The notification is effective from 1 August 2019.
Q3: What is the GST rate on electric vehicles after this notification?
Answer:
GST on electrically operated vehicles is reduced from 12% to 5% (2.5% CGST + 2.5% SGST).
Q4: What types of vehicles qualify as electrically operated vehicles?
Answer:
The following qualify:
Electric two-wheelers
Electric three-wheelers
Electric cars
Electric buses
E-bicycles
As long as they run solely on electrical energy.
Q5: Is GST reduced on EV chargers and charging stations?
Answer:
Yes ✅. GST on chargers or charging stations for EVs is reduced to 5%, making EV infrastructure more affordable.
Q6: What was the GST rate on EV chargers before this change?
Answer:
Earlier, EV chargers were taxed at 18%. This notification reduced the rate to 5%, a major relief for infrastructure providers.
Q7: Does this reduction apply to all types of chargers?
Answer:
Yes, if the charger or charging station is specifically meant for electrically operated vehicles and falls under HSN 8504.
Q8: Why was Serial No. 206 deleted from Schedule II?
Answer:
Serial No. 206 (6% CGST slab) was omitted to avoid duplication and ensure EV chargers are taxed only at 5%, not 12%.
Q9: How does this notification help EV manufacturers?
Answer:
It:
Reduces tax burden
Improves affordability
Enhances demand
Improves working capital via lower output GST
👉 Planning to set up an EV manufacturing or trading business?
🔗 https://finodha.in/setup-business/
Q10: Is Input Tax Credit (ITC) available at 5% GST?
Answer:
Yes ✅. ITC is available subject to Section 16 of the CGST Act, as EVs and chargers are taxable supplies.
Q11: How should EV sales be reported in GST returns?
Answer:
EV supplies should be:
Reported with correct HSN (87 / 8504)
Taxed at 5%
Disclosed correctly in GSTR-1 and GSTR-3B
👉 File accurate GST returns with Finodha:
🔗 https://finodha.in/gst-return-filing/
Q12: Does this notification apply to hybrid vehicles?
Answer:
No ❌. Hybrid vehicles are not covered, as they are not run solely on electrical energy.
Q13: How does this benefit EV charging station operators?
Answer:
Lower GST on chargers reduces:
Setup cost
Capital investment
Break-even period
Encouraging wider charging infrastructure.
Q14: Is GST registration mandatory for EV businesses?
Answer:
Yes, if turnover crosses the threshold or if inter-state supplies are involved.
👉 Get GST registration assistance from Finodha:
🔗 https://finodha.in/online-gst-registration/
Q15: Who should carefully review Notification No. 12/2019?
Answer:
This notification is crucial for:
EV manufacturers & dealers
Charging station operators
Auto component manufacturers
Startups in clean mobility
👉 Get expert GST guidance from Finodha:
🔗 https://finodha.in/gst-compliance/
Conclusion🚀:
Notification No. 12/2019 – Central Tax (Rate) significantly lowers the GST burden on electric vehicles and EV infrastructure, making clean mobility more affordable and commercially viable.
Download PDF: Notification No. 12/2019 - Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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