Explainer: All you need to know about the GST on EVs
During the 55th GST Council meeting press conference on Saturday, the panel approved an increase in the GST rate on used EVs sold by businesses to 18 per cent from 12 per cent earlier.
The Union Government has launched the PM E-DRIVE Scheme with an outlay of Rs 10,900 crore for the electric vehicles (EVs).
The scheme shall be implemented from October 1, 2024 to March 31, 2026.
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It aims at faster adoption of electric vehicles, setting up of charging infrastructure and development of EV manufacturing ecosystem in India.
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The subsidy under the PM E-DRIVE scheme for electric two-wheelers has been fixed based on battery power at Rs 5,000 per kilowatt hour but the overall incentive will not exceed Rs 10,000 in the first year.
Further in the second year, it will be halved by Rs 2,500 per kilowatt hour, and the overall benefit will not exceed Rs 5,000.
Under the PM E-DRIVE scheme, subsidies/demand incentives worth Rs 3,679 crore have been provided to incentivise e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.
Additional Secretary in Ministry of Heavy Industries Hanif Qureshi said that a mobile app will be introduced for e-vouchers generated for availing subsidy under the scheme to make the entire process seamless.
“One vehicle per Aadhaar will be allowed. As soon as the vehicle is sold, e-voucher will be generated,” he added.
Rs 780 crore being earmarked towards upgradation of testing facilities under PM E-DRIVE scheme is proposed to be utilised for new equipment and technology to be put in place for testing of electric vehicles, the Additional Secretary told.
Three-wheelers, including e-rickshaws, will get a demand incentive of Rs 25,000 in the first year, which will be halved to Rs 12,500 in the second year. For the L5 category they will get a benefit of Rs 50,000 in the first year, and for the second year, it is Rs 25,000.
An amount of Rs 500 crore has been allocated for incentivising e-trucks. Incentives will be given to those who have a scrapping certificate from MoRTH approved vehicles scrapping centres.
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