Services Tax from the present 12 per cent to 5 per cent on electric vehicles has been shared with the GST Council.
PUNE: Hyundai, second biggest car maker, which launched its first full-electric Kona SUV last week at Rs 25.30 lakh pan India showroom, could become cheaper by Rs 1.40 lakh.
Finance Minister Nirmala Sitharaman in her maiden Budget to promote e-mobility had proposed to slash the Goods and Services Tax from the present 12 per cent to 5 per cent on electric vehicles has been shared with the GST Council.
If the FM's proposal is passed and ends up encompassing all four wheeler electric vehicles, Hyundai will pass on the benefit to buyers of the Kona Electric.
"In a bid to push e-vehicles in the country, the FM has proposed to cut GST from the current 12 per cent to 5 per cent which would result in a benefit if Rs 1.40 lakh for the Kon Electric SUV," Puneet Anand, Senior General Manager & Group Head, Marketing at Hyundai India told Financial Chronicle.