Budget 2019: GST On Electric Vehicles Reduced To 5 Per Cent; Tax Deduction Of Rs 1.5 Lakh On Interest Payments

Presenting the Union Budget 2019-20, Finance Minister Nirmala Sitharaman stated that the government will allow for an additional deduction of Rs 1.5 lakh on interest payments for loans taken to purchase Electric Vehicles (EVs).

Moreover, EVs would now be moved under the five per cent GST slab from 12 per cent previously.

Moreover, the government has approved spending of Rs 10,000 crore under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME 2) scheme to create charging infrastructure and incentivise EV adoption in the country.