--- title: "New GST on E-Rickshaw 2026: 5% Rate on Electric Rickshaw, Parts" description: "New GST rate on e-rickshaws in 2026 is 5% on all electric rickshaws and their spare parts. Simplify GST billing with Busy and apply the right rate every time." canonical: "https://busy.in/gst-rates/e-rickshaw/" author: "Hitesh Aggarwal" published: "2025-05-19T12:56:03.000Z" category: "GST Rates" --- - The GST rate on fully electric e-rickshaws is 5%, encouraging eco-friendly transport. - Batteries sold separately for e-rickshaws have an 18% GST, but it's 5% if bundled with the vehicle. - E-rickshaw parts like tyres and chargers are taxed at 18% GST when sold separately. - Buyers can claim Input Tax Credit on GST for commercial use if they are GST-registered. - Lower GST on e-rickshaws makes them more affordable and supports green transport initiatives. # 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](https://busy.in/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. ## 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. Live Demo Available Today ## Record E-Rickshaw Finance EMI Payments in BUSY Ledgers Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## 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](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) (ITC)? - Yes, if the e-rickshaw is purchased for commercial use and the buyer is [GST-registered](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) . - 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](https://busy.in/gst/a-guide-to-invoicing-under-gst/) 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. ## About the author **Hitesh Aggarwal** 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? 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