July 23, 2024

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Budget Live update on EVs-GST reduced from 12% to 5% on EVs

Budget Live update on Electric Vehicles

In Budget’s part B, the Finance Minister, Nirmala Sitharaman thanked and appreciated all the honest taxpayers in India. As the government of India made efforts, the direct tax revenue has increased to Rs 11.37 lakh crore from 2013-14 to 2018-19.

Budget Live update on Electric Vehicles

Currently, the lower rate of 25% is applicable to firms with an annual turnover of Rs 250 crore.

Finance Minister said, “I propose to widen this to all companies with an annual turnover of up to Rs 400 crore. This will cover 99.3% of all companies. “

“Additional income tax deduction of Rs 1.5 lakh on the interest paid on loans for EVs.” Leads to the benefit of Rs.2.5 Lakh. GST reduced from 12% to 5%  on electric vehicles.

Finance Minister said, 

“The government will launch a scheme to invite global companies through transparent bidding to set up mega manufacturing plants in sunrise and advanced technology areas such as semiconductor fabrication, solar photovoltaic cells, Lithium storage batteries solar electric charging infrastructure and provide them investment linked income tax exemptions. Under 35 AD of the income tax act and other indirect tax benefits.”

Coming to EVs, she said 

“The government aims to make India a global hub of manufacturing of EVs. Inclusion of solar batteries and charging infrastructure will boost our efforts. Govt has already decided to low the GST rate on EV from 12 to 5%. Also to make EVs affordable to consumers our govt will provide additional income tax deduction of 1.5 lakhs of rupees on the interest paid, on loans taken on purchase EVs, which means this amounts to a benefit of 2.5 lakhs crores over the loan period to the taxpayer who takes loans to purchase EVs.”

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