GST Change on Electric Vehicles 2025: EV Cars & Scooters at Low Price or High Price? 

As the new GST change was implemented at the 56th GST Council meeting, effective as of 22nd September 2025, it has impacted several products. Coming to the specific segment, people are becoming curious to know the GST change on electric vehicles, whether it is cars, bikes, or scooters. The tax policies will determine the overall cost. However, the government has retained the GST of 5% on EVs, whereas other vehicles fall into the restructuring of the new tax segment.
But if we dig the complete segment deeper, you may find it a little confusing. The GST change on electric batteries and EV chargers remains to be 18% whereas some fluctuation in input tax credits and charging infrastructure. Let's understand the complete scenario of GST on two-wheelers and four-wheelers.

GST Reform 2025: What Changed in the Electric Vehicle Segment

The GST 2.0 has simplified several products in different slabs, whereas in the EV sector, there is no change. Let's have a quick look at the list.

Check out the list of GST change on automotive parts and accessories

This means the electric vehicles continue to enjoy the low GST tax, but batteries, automotive parts, and services can impact the pockets of drivers.

What Is the Impact on Stakeholders?

The GST reform 2025 has impacted the stakeholders in many ways, such as:

Consumers

>> Good news: The GST on electric scooters, bikes and cars remains at 5%, which means people can easily buy them and enjoy the nominal charges.
>> Bad news: The 18% GST on battery swapping and charging infrastructure makes it a little costlier for people.
>> Used EV buyers: The sale of used or second-hand EVs remains a little complex.

Manufactures

>> Good news: As the tax slab remains the same for EV cars, this means manufacturers will get a boost in their sales.
>> Bad news: The GST slab of 18% on standalone batteries can lead to tighter margins.
>> Charging and battery swapping brands: The services and batteries on EV cars and bikes remain at 18%, which means there will be low margins and higher charges on setting up EV charging station infrastructure.

Final output

The implemented GST on EV cars and scooters showcases the future and mindset of the Indian government to promote Electric vehicles. Buyers can enjoy a low tax on EV purchase compared to petrol and diesel cars. However, it may be slightly expensive to buy batteries and charging services. Very soon, the infrastructure needs to be aligned and updated by the government to make it a more reliable and effective mode of transportation, which leads to greener options and lower pollution effects.

Frequently Asked Questions

Que. What is the current GST on EVs in India?
Ans. The new GST change on electric vehicles remains the same as 5%.

Que. What is the GST on EV batteries and charging?
Ans. GST on EV batteries and charging did not get affected, which is 18%.

Que. Does GST apply to used or second-hand EVs?
Ans. Yes, GST is also imposed on second-hand or used EV cars and scooters. However, the GSTs are paid on the margin rather than on the overall value of the vehicle.

Que. What is the GST change on two-wheeler and four-wheeler vehicles?
Ans.There is no GST change on either of the categories and remains as earlier, 5% tax on two-wheeler, three-wheeler, and four-wheeler EV.

Que. Will the GST change on hybrid vehicles be the same as Electric vehicles?
Ans. No, the tax imposed on hybrid vehicles will not be similar to electric vehicles. Hybrid vehicles fall under the higher GST slab.