EV Vehicle charging stations to provide ‘battery charging service’ and not supply or distribution of ‘electricity’ – liable to GST @ 18%
Classification under GST Law can sometimes be contrary to general understanding. The charging of a battery in EVs requires electricity and an electricity company will provide electricity supply to the public charging stations which will in-turn provide the electricity to all electric vehicle users who can access these pubic charging stations for battery charging. General understanding is that the EV vehicle battery shall be charged with electricity (which is an exempt goods)’, but The AAR dug deep and concluded that it is ‘Battery Charging Service’. The AAR Karnataka has opined that the charging of EV vehicles will be a service liable to GST @18% in the case of M/s CHAMUNDESWARI ELECRICITY SUPPLY CORPORATION LIMITED [2023-VIL-147-AAR].