In its 36th meeting on Saturday, the GST Council slashed the GST (goods and service tax) rates on electric vehicles from 12 percent to 5 percent. Tax rates on EV chargers were also lowered from 18 percent to 5 percent.

The new GST rates will become effective from 1 August 2019.

Further, hiring of electric buses by local authorities were exempt from GST. "Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST," the government's press release said.

The Indian government has been pushing policies to promote the use of EVs in the country. In the Budget 2019, presented by Finance Minister Nirmala Sitharaman on 5 July, proposed income tax relief loans to purchase EVs. Individuals purchasing EVs on loan will receive a deduction of Rs 1.5 lakh on interest paid on the loan.

The government may also increase registration charges on petrol and diesel cars to push EVs.

Meanwhile, the GST Council also decided to extend the last date for filing of intimation in FORM GST CMP-02 from 31 July to 30 September. The last date for furnishing statement containing the details of the self-assessed tax in FORM GST CMP-08 for the April-June 2019 quarter was also extended from 31 July to 31 August.