GST on E-Rickshaw and Spare Parts: Tax Benefits and Inclusions
As India pushes toward eco-friendly transportation, e-rickshaws have become a popular and affordable option for last-mile connectivity. But what GST benefits apply to these electric vehicles? And what about their parts and batteries? This blog explains the gst on e rickshaw, including the applicable tax rates on batteries and spare parts, helping buyers, sellers, and operators make informed decisions.
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GST Rate on E-Rickshaws
| Vehicle Type | HSN Code | GST Rate |
|---|---|---|
| Fully electric e-rickshaw (battery-operated) | 8703 | 5% |
The e rickshaw gst rate is just 5%, making it one of the lowest GST rates in the automobile sector. This benefit is offered to promote green mobility and reduce reliance on fossil fuels.
Note: Only fully electric, battery-operated e-rickshaws qualify for the 5% GST.
GST on E-Rickshaw Battery
| Battery Type | HSN Code | GST Rate |
|---|---|---|
| Lithium-ion battery | 8507 | 18% |
| Lead-acid battery | 8507 | 18% |
| Battery sold with vehicle | Bundled | 5% |
| Battery sold separately | 8507 | 18% |
So, while the vehicle is taxed at 5%, the gst on e rickshaw battery, if sold separately, is 18%. However, when a battery is bundled with a new e-rickshaw, the entire combo is taxed at 5%.
GST on E-Rickshaw Parts and Accessories
| Part/Accessory | HSN Code | GST Rate |
|---|---|---|
| Tyres, tubes | 4011 | 18% |
| Electric motors and controllers | 8501 | 18% |
| Chargers and converters | 8504 | 18% |
| Lights, mirrors, seating | Varies | 18% |
The gst on e rickshaw parts is 18% when sold separately. Unlike the e-rickshaw vehicle itself, most individual components are not covered under the concessional 5% slab.
Can Buyers Claim Input Tax Credit (ITC)?
- Yes, if the e-rickshaw is purchased for commercial use and the buyer is GST-registered.
- Claim ITC on 18% paid on batteries or parts
- Claim ITC on 5% GST paid on the vehicle, if applicable
Always ensure that GST-compliant invoices are maintained to claim ITC correctly.
Benefits of Lower GST on E-Rickshaws
- Promotes green public transport
- Makes EVs more affordable for small businesses
- Encourages shift from fuel-based to electric mobility
- Reduces overall cost of ownership and operation
With the gst on e rickshaw set at a reduced rate, India is giving a strong push to sustainable transport. Understanding the split between vehicle, battery, and spare part taxes helps you plan purchases better—especially for commercial fleets and e-mobility entrepreneurs.
As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.
Frequently Asked Questions (FAQs)
- What is the GST on e rickshaw in India?It is 5% for fully electric battery-operated e-rickshaws.
- Is GST on e rickshaw battery different?Yes. When sold separately, batteries are taxed at 18%. If bundled with the e-rickshaw, the entire vehicle is taxed at 5%.
- What is the GST on e rickshaw parts like tyres or motors?18%, as most parts and accessories are not covered under the 5% slab.
- Can e-rickshaw operators claim ITC?Yes, if they’re GST-registered and using the e-rickshaw for commercial purposes.
- Is there any subsidy or additional tax benefit?The central government and some states offer FAME-II subsidies and road tax exemptions, but these are outside the GST structure.
