{"id":2814,"date":"2018-05-16T05:33:55","date_gmt":"2018-05-16T05:33:55","guid":{"rendered":"https:\/\/www.gsthelplineindia.com\/blog\/?p=2814"},"modified":"2019-11-06T13:23:31","modified_gmt":"2019-11-06T13:23:31","slug":"gst-on-e-rickshaw-tyres-and-batteries","status":"publish","type":"post","link":"https:\/\/www.gsthelplineindia.com\/blog\/2018\/05\/16\/gst-on-e-rickshaw-tyres-and-batteries\/","title":{"rendered":"Impact of 28% GST Rate on e-Rickshaw Tyres and Batteries"},"content":{"rendered":"<p>The Goods and Services Tax (GST) launch in July 2017 in India is a consumption-based indirect tax that is levied on the supply of certain services and goods. The supply (sale) of e-rickshaw and its parts such as e-rickshaw tyres, batteries, etc are also under the GST cover and taxable accordingly. In this article, you will find out details about GST and its impacts on the supply of e-rickshaws, tyres and other parts of e-rickshaws in India.<\/p>\n<div id=\"toc_container\" class=\"no_bullets\"><p class=\"toc_title\">Contents<\/p><ul class=\"toc_list\"><li><\/li><li><\/li><li><\/li><li><\/li><li><\/li><\/ul><\/div>\n<h2><span id=\"What_is_an_e-Rickshaw\">What is an e-Rickshaw?<\/span><\/h2>\n<p>An e-rickshaw is an electric three-wheeler vehicle which takes its power from electricity rather than traditional fuels such as petrol, CNG and diesel. E-rickshaws and mostly manufactured in India and China and preferred because of the low fuel cost.<\/p>\n<h2><span id=\"GST_on_e-Rickshaw\">GST on e-Rickshaw<\/span><\/h2>\n<p>As per the latest GST rate list released by the Indian government, the <strong>GST rate on e-rickshaws and other electric vehicles is 5 per cent<\/strong>, from 1st August 2019.<\/p>\n<p><strong>Impact<\/strong>: E-rickshaws, along with other electric vehicles, are being taxed at the lower GST rate of 5%, which supports the government\u2019s plan to promote the use of electric vehicles in India. This is also in line with the budget of e-rickshaw buyers and operators, which mostly include poor and lower-middle-class citizens of the country.<\/p>\n<p><strong>Recommended<\/strong>: <a href=\"https:\/\/www.gsthelplineindia.com\/blog\/2017\/04\/21\/how-gst-impact-lives-common-man\/\">GST effect on common man<\/a><\/p>\n<h2><span id=\"GST_on_e-Rickshaw_Tyres\">GST on e-Rickshaw Tyres<\/span><\/h2>\n<p>The rate of <strong>GST on e-rickshaw tyres is 28%<\/strong>, higher than the GST on e-rickshaws. This is a problem for e-rickshaw operators in the country, as this increases the cost of operation for them.<\/p>\n<p><strong>Impact and Actions<\/strong><\/p>\n<p>The 28% GST on e-rickshaw tyres increases the cost of these vehicles. It seems unfair to include e-rickshaws, which are mostly used by poor men as a source of livelihood, in the <a href=\"https:\/\/www.gsthelplineindia.com\/blog\/2017\/05\/18\/gst-tax-rate\/\">GST rate category<\/a> of royal items such as gambling, digital cameras, betting, tobacco, motor vehicles (cars), etc.<\/p>\n<p>Many protests have been held and applications have been filed with the government to reduce the GST rate on e-rickshaw tyres to 5 per cent, the same as other \u201cthree-wheeled powered cycle rickshaws\u201d. However, these were rejected on the ground that e-rickshaws do not have the option to run without the motor and therefore cannot be included in the 5% GST category. Now 5% reduced rate is liable from 1st August 2019.<\/p>\n<p><span style=\"color: #800000;\"><strong>Read Also:<\/strong><\/span>&nbsp;<a href=\"https:\/\/www.gsthelplineindia.com\/blog\/2018\/10\/23\/vehicle-owners-pay-18-gst-on-pollution-certificate\/\">AAR: Now Vehicle Owners Pay 18% GST on Pollution Certificate<\/a><\/p>\n<h2><span id=\"GST_on_e-Rickshaw_Battery\">GST on e-Rickshaw Battery<\/span><\/h2>\n<p>As on May 2018, <strong>GST on batteries used in electric vehicles is 28 per cent<\/strong>, while the GST rate on the sale of complete e-vehicles with batteries is 12%. That means it costs more to buy separate batteries for electric vehicles.<\/p>\n<p><strong>Impact &amp; Actions<\/strong><\/p>\n<p>The higher rate on the batteries of e-rickshaws is further increasing the cost of operating these vehicles. The lower middle class is suffering the most. The high tax rate on batteries is also affecting the battery swapping mechanism, making it hard for the operators of e-rickshaws to continue their operations in the budget. People involved in the business of battery selling, leasing or swapping have also been affected negatively by this.<\/p>\n<p>The Ministry of Road Transport had earlier put forward a proposal to reduce the GST rate on batteries used in e-vehicles from 28% to 12% in order to promote the use of these vehicles by more people. The application is under consideration by the GST Council.<\/p>\n<p><strong>Read Also<\/strong>: <a href=\"https:\/\/www.gsthelplineindia.com\/blog\/2017\/06\/19\/gst-impact-on-indian-consumer\/\">GST impact on consumers<\/a><\/p>\n<h2><span id=\"GST_on_other_parts_of_e-Rickshaw\">GST on other parts of e-Rickshaw<\/span><\/h2>\n<p>The GST rates on other parts of e-rickshaw, including seats, engine, base model, etc are separate depending on the part.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Goods and Services Tax (GST) launch in July 2017 in India is a consumption-based indirect tax that is levied on the supply of certain services and goods. The supply (sale) of e-rickshaw and its parts such as e-rickshaw tyres, batteries, etc are also under the GST cover and taxable accordingly. In this article, you &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.gsthelplineindia.com\/blog\/2018\/05\/16\/gst-on-e-rickshaw-tyres-and-batteries\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Impact of 28% GST Rate on e-Rickshaw Tyres and Batteries&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":2815,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[459,457,458,460,456],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Impact of 28% GST Rate on e-Rickshaw Tyres and Batteries<\/title>\n<meta name=\"description\" content=\"28% GST rate will be levied on e-rickshaw tyres and batteries as they are registered as \u2018motor vehicles\u2019 under the motor vehicle act, according to the order of advance ruling authority (AAR) in India. 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