Hiring of electric buses by local authorities exempted from GST

New Delhi, July 27 (KNN) The Government has exempted hiring of electric buses by local authorities from Goods and Service Tax (GST), said Finance Ministry.

The decision was taken at 36Th GST Council Meeting that was held under the chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman.

The Ministry said “Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.”

In addition, the Council has decided to reduce GST rate on electrical vehicles from 12% to 5% and on EV chargers from 18% to 5%.

The changes made by the council will be effective from August 1, 2019, the meeting concluded.