GST panel calls for raising tax from 5% to 28% on EV cars worth over ₹40 lakh: Report

Medhaa Gupta, Published on Sep 2nd, 2025

GST panel calls for raising tax from 5% to 28% on EV cars worth over ₹40 lakh: Report

Group of Ministers for GST Council recommended raising the tax on luxury EV cars valued at over $46,000 (over ₹40 lakh) from 5% to 28% and for those worth between ₹20 lakh and ₹40 lakh to 18%, Reuters reported, citing a government document. It reportedly said this is because these cars cater to society's "upper segment" and are mostly imported.

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