Amendment to Integrated Tax Rates for Electrically Operated Vehicles

The Central Government, under the authority of section 5(1) of the Integrated Goods and Services Tax Act, 2017, along with section 15(5) of the Central Goods and Services Tax Act, 2017, and based on the Council's recommendations, introduces further amendments to Notification No. 1/2017-Integrated Tax (Rate) dated June 28, 2017.

Amendments: Schedule I (5%): After serial number 234A, the following entry is inserted: Serial Number: 234B Description: Charger or charging station for Electrically operated vehicles.

After serial number 242, the following entry is added: Serial Number: 242A Description: Electrically operated vehicles, including two and three-wheeled electric vehicles. Explanation: Electrically operated vehicles are those run solely on electrical energy derived from an external source or electrical batteries, including E-bicycles.

Schedule II (12%): Serial number 206 and related entries are omitted. Schedule III (18%): Against serial number 375, the entry is amended to include "other than charger or charging station for Electrically operated vehicles" after the word "inductors."

This notification shall be effective from August 1, 2019. Issued by Gunjan Kumar Verma, Under Secretary to the Government of India, this amendment aims to streamline tax rates for electrically operated vehicles and their related infrastructure, further encouraging the adoption of eco-friendly transportation alternatives.