India is looking forward to implement emission-free transportation. Most importantly, the government is showing interest in this matter. Recently, the GST Council has slashed tax from 12% to 5% on electric vehicles in India. This decision was executed at the 36th GST council meet. There is also a major reduction in the taxation for electric vehicle chargers and charging stations. It has now come down to 5% from 18%. Adding icing to the cake, there will be no GST levied on the use of Electric buses. The new tax rates will be effective from the 1st of August, 2019.

As a result of the tax rate drop, the high-end premium EV cost will come down by 1 lakh INR. Similarly, the cost of low-end electric vehicles in India will drop by 50,000 INR.

With the rise of electric vehicles in India, there will be a reduction in the emission of greenhouse gases. Also, when IC engines will minimize, the cost for fossil fuels such as Petroleum will also come down. The government can take benefit from this. Usually, India imports oil from other nations. So, the nation can save the huge capital it spends over importing oil.

Reduction in GST will pave way for more EV manufacturers to set their business in India. In the future, there will be more demand for electric vehicles. So, for sure the electric vehicle market will flourish well in India.