Rajasthan Government to Re-Release Rs. 200 Crore EV Subsidy, GST Free on EVs

The scheme amount of Rs. 200 crores for electric vehicle subsidy, which the government stopped in September 2022, is anticipated to be released shortly by the Rajasthan State Government to eligible EV owners.

The Rajasthan State government will now be providing the benefit of reimbursement of State Goods and Services Tax (GST) and grant subsidies to electric vehicle buyers starting from September 2022.

The Rajasthan State Transport Department has also issued orders regarding this. Under this, the State GST amount will be reimbursed on all types of electric vehicles.

EV Subsidy Details

The Subsidy will be given to electric vehicles purchased through the Rajasthan Transport Department from September 2022 till now.

For this purpose, the Rajasthan state government has provisioned an overall budget of Rs 200 crores. The government had previously announced the creation of an electric vehicle promotional fund in the budget for the year 2024-25.

Eligibility

The EVs eligible for incentivization would receive 100% reimbursement of the State GST imposed on the electric vehicles. All categories of electric vehicles would get a fixed amount of reimbursement.

First Come First Serve Basis

EVs registered from September 1, 2022, till now would be eligible for reimbursement by the government. However, this refund would be distributed by the department on a first come first serve basis restricted to a certain limit.

Provision in Rajasthan States EV Subsidy

With a total outlay of 200 crores, the subsidy offers specific incentives for electric two-wheelers, three-wheelers, electric four-wheelers, and electric buses.

There is a provision of subsidy of Rs 4,000 to 10,000 for electric two-wheelers, Rs 4,000 to 20,000 for e-rickshaws and e-carts, Rs 3,000 to 50,000 for electric four-wheelers and Rs 1,00,000 to 5,00,000 for e-buses.

This subsidy will be given to about 1 lakh two-wheelers, 50,000 e-carts, 50,000 e-autos, rickshaws, 7,000 electric cars, 500 e-buses and about 7,000 retrofitted vehicles in the state. This would also include the 15,000 electric vehicle owners residing in Ajmer.

Grant Soon to be Distributed

The Rajasthan State Transport Department has already received the grant amount from the government and shall start its distribution shortly.

However, the SOP has not been issued even though the subsidy amount has already been received. As soon as the SOP gets approved, the state transport department will begin to issue the same and finally distribute it amongst the resident EV owners.