New GST on E-Rickshaw and Spare Parts: Tax Benefits and Inclusions
- 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.
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.
Experience the power of Expert Accounting
Join our guided walkthrough to see how BUSY can transform your business operations.
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% |
Vehicle Type
HSN Code
New GST Rate
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% |
Battery Type
HSN Code
New GST Rate
Battery Type
HSN Code
New GST Rate
Battery Type
HSN Code
New GST Rate
Battery Type
HSN Code
New GST Rate
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% |
Vehicle Type
HSN Code
Old GST Rate
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% |
Battery Type
HSN Code
Old GST Rate
Battery Type
HSN Code
Old GST Rate
Battery Type
HSN Code
Old GST Rate
Battery Type
HSN Code
Old GST Rate
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% |
Part/Accessory
HSN Code
GST Rate
Part/Accessory
HSN Code
GST Rate
Part/Accessory
HSN Code
GST Rate
Part/Accessory
HSN Code
GST Rate
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.
