What is the latest GST rate on electric vehicles in India, and how does it differ for new EVs and used EVs in 2025?
✅ What’s the current tax rate on new EVs
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New electric vehicles are taxed at 5% GST. The Economic Times+2Business Standard+2
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This includes both mass-market EVs and luxury EVs—there was concern about increasing the rate for high-end EVs, but the GST Council decided to keep them at 5%. NDTV Profit+2Business Standard+2
⚠️ What about used/old EVs
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Used EVs sold by businesses are taxed at 18% GST, but only on the margin value (i.e. the difference between sale price and depreciated value) — not on the full value. India Today+2Taxscan+2
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If an individual sells a used EV to another individual (private sale), GST does not apply. 25 Under 25+1
🔍 Proposed changes / proposals
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Earlier proposals (by a Group of Ministers) suggested raising the GST rate for high-end EVs priced between ₹20-40 lakh from 5% to 18%, and possibly 28% for EVs above that threshold. These were under discussion but not implemented since the Council decided to retain 5% across all new EVs. Business Today+2Business Today+2
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There is also concern that cuts in GST for internal-combustion engine (ICE) vehicles (in recent GST reforms) may make the price gap between petrol/diesel cars and EVs smaller, possibly affecting EV adoption. ETAuto.com
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