Navigating GST crossroads on EV charging – Goods or Service?
Indian Government is coming up with various policies and subsidies to promote Electric Vehicles (‘EVs’) business in India. EVs require EV Charging Stations for charging their batteries. Under GST, doubt arises on whether EV charging is categorised as supply of goods (Electricity) or service (Charging service). This issue was answered by the Authority for Advance Ruling in the case of Chamundeswari Electricity Supply Corporation Limited, 2023-VIL-147-AAR (KAR). Under global legal framework, the European Court of Justice offered an alternative viewpoint on this categorisation. In this context, it becomes important to understand the technical aspects around this issue and implications of this categorisation, especially under GST.
In this Article, Ms. Aasmee Mangla (Associate Partner), Ms. Simran Arora (Senior Associate) and Mr. Shivam Sabharwal (Associate) have navigated through intricacies of EV charging mechanism and categorisation of this transaction into supply of goods or services from GST perspective
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