GST Officials Uphold Decision of 18% GST On Charging EVs At Public Stations

A GST panel that has the state and centre revenue official called the Fitment Committee, has ruled that the decision to levy an 18% GST on the electric vehicles (EVs) charging at public charging stations, denying the exemption calls.

Industry urges towards the dual nature of the EV charging process- access to electricity and ancillary charges to use the charging station. 

The supply of electrical energy is exempt from GST according to notification No. 2/2017-CTR, and services associated with the transmission and distribution of electricity are also exempt under notification No. 12/2017-CTR, the same exemption should apply to EV charging services, it was claimed.

However, the Karnataka Authority for Advance Ruling (AAR) held that the charging batteries at public charging stations comprise a supply of services which makes it an entire consideration within 18% GST.

It was stressed by the ruling of the Karnataka AAR that the service furnished at EV charging stations comprises more than just the supply of electricity. It comprises the provision of the facilities and services required to charge which justifies the GST application to the full amount charged.

Before that, the Ministry of Power stated that charging an EV battery is a service that consumes electricity but does not comprise the sale of electricity. The same distinction was a major factor in the decision to maintain the present GST rate. 

Read Also: A Deep Analysis of GST Framework on EV Charging Services

Therefore EV users will continue to pay an 18% GST on the total amount charged at public charging stations.