11-October-2026
Taxation
 
GST Council proposes 5% GST option for EV passenger transport, rentals
09-Oct-2026

The GST Council has recommended allowing passenger transport and rental services using electric vehicles (EVs) to opt for a 5% GST rate with restricted input tax credit (ITC), in a move aimed at bringing greater tax clarity to electric mobility services. The recommendation covers passenger transport services and rental services of motor vehicles with operators, where the service is provided using an electric vehicle and the cost of battery charging is included in the consideration.

News Source:- https://www.financialexpress.com/policy/economy-gst-council-proposes-5-gst-option-for-ev-passenger-transport-rentals-4357057/