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.

New 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 Rates

New GST Rate on E-Rickshaws in India

The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for e-rickshaws (no compensation cess).

New GST Rate on E-Rickshaws

Vehicle Type	HSN Code	New GST Rate
Fully electric e-rickshaw (battery-operated)	8703	5%

New GST on E-Rickshaw Battery

Battery Type	HSN Code	New 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%.

Old GST Rate on E-Rickshaws

(Old GST Rates – Applicable Until 21st September)

Vehicle Type	HSN Code	Old 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.

Old GST on E-Rickshaw Battery

Battery Type	HSN Code	Old 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.

Hitesh Aggarwal

Chartered Accountant

MRN No.: 529770

City: Delhi

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

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.

View all FAQs