Notification No. 12/2019 - Integrated Tax (Rate) Explained

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Notification No. 12/2019 - Integrated 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 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with 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- Integrated Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 666 (E), dated the 28^th June, 2017, namely:-

In the said notification, -

in Schedule I - 5%,

after serial number 234A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: -

“234 B

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

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 - 12%, serial number 206 and the entries relating thereto shall be omitted;

in Schedule III - 18%, 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 1^st August, 2019.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

Note: - The principal notification No.1/2017-Integrated Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 666(E), dated the 28^th June, 2017 and last amended by notification No. 25/2018- Integrated Tax (Rate), dated the 31^st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1264 (E), dated the 31^st December, 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 12/2019 - Integrated Tax (Rate)

Q1: What is Notification No. 12/2019 – Integrated Tax (Rate)?

Answer:
It is a GST notification that reduced IGST on electric vehicles and EV charging infrastructure to 5%, effective from 1 August 2019.

Q2: From which date is the reduced GST rate applicable?

Answer:
The reduced IGST rate applies from 1 August 2019 onwards.

Q3: What is the IGST rate on electric vehicles now?

Answer:
Electric vehicles are taxed at 5% IGST under Schedule I.

Q4: Does this apply to electric two-wheelers and e-bikes?

Answer:
Yes. Electric scooters, bikes, and e-bicycles are explicitly included.

Q5: What is the GST rate on EV chargers and charging stations?

Answer:
EV chargers and charging stations are also taxed at 5% IGST.

Q6: Are hybrid vehicles covered under this notification?

Answer:
❌ No. Only pure electric vehicles qualify. Hybrids remain in higher tax slabs.

Q7: Which notification was amended by this?

Answer:
It amended Notification No. 1/2017 – Integrated Tax (Rate).

Q8: Can traders claim ITC on EV chargers?

Answer:
✅ Yes, Input Tax Credit is available, subject to normal GST conditions.
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Q9: Does this apply to inter-state supplies only?

Answer:
Yes. This notification applies to IGST, i.e., inter-state supplies and imports.

Q10: Is GST registration mandatory to sell EVs?

Answer:
Yes. EV suppliers must be GST-registered.
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Q11: What about EV charging station operators?

Answer:
They benefit directly due to reduced GST on equipment and services, improving project viability.

Q12: Is this notification still valid in 2025?

Answer:
✅ Yes. The 5% GST rate on EVs and chargers continues unless amended later.

Q13: How does this help EV startups?

Answer:
Lower GST → lower capital cost → faster breakeven → higher investor interest 🚀

Q14: Does this impact GST returns?

Answer:
Absolutely. Wrong rate reporting can cause notices.
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