The high-powered GST Council on Saturday decided to reduce the tax rate on electric vehicles to 5 per cent from the existing 12 per cent, effective from August 1.

It also slashed the Goods and Services Tax on EV chargers from 18 per cent to 5 per cent, an official statement said after the 36th meeting of the council. The meeting, chaired by Finance Minister Nirmala Sitharaman, was held via video conferencing. The council also approved GST exemption for the hiring of electric buses by local authorities.