Electric vehicles (EVs) are becoming popular in India. Because almost every business is trying to reduce their fuel costs and carbon footprint. One of the leading options in this space is the Ola electric scooty. It’s not only eco-friendly but also offers financial benefits, especially for business owners.
In this article, you will get to know how GST on Ola electric scooty works and how you can save money by using GST registration and GST return filing.
What is the GST on Ola Electric Scooty?
The Indian government is encouraging the use of electric vehicles and that’s why they have kept GST on Ola Electric Scooty very less. Thus, the GST on electric vehicles, including the Ola electric scooty, is 5%. This is much lower than the 28% GST on petrol or diesel two-wheelers.
For business owners, this reduced tax is a big advantage. It not only helps in reducing overall costs but also supports the move towards a greener environment.
Can You Claim Input Tax Credit (ITC) on an Ola Electric Scooty?
Business owners can save a lot on purchase of Ola Electric by claiming the Input Tax Credit (ITC). However, ITC may only be claimed if the scooter is utilized for commercial reasons.
If the scooter is purchased in the company’s name and utilized for business purposes such as deliveries or commuting, you can claim the ITC on the GST paid. This can reduce your overall tax bill.
However, if the Ola Electric Scooty is used for personal use, ITC cannot be claimed.
How to Minimize GST on Ola Electric Scooty
The following are some tips on how to reduce GST while purchasing an Ola scooty electric vehicle for business purposes.
Acquire GST Registration
If your company is registered for GST, you are entitled to receive ITC. You cannot enjoy the benefit of GST if you don’t have a GST Registration. Ensure that your GST number is active and valid before your purchase of GST on Ola Electric Scooty.
Learn More: What Is The Eligibility Criteria For GST Registration?
Make Timely GST Payments
You are obligated to pay your GST through GST return filing on time and accurately to claim ITC on Ola Electric Scooters.
Utilize the Scooty for Enterprises
You need to make it apparent that the scooty is for business reasons whenever claiming ITC. Document how the vehicle is used for business purposes. If it’s a combination of the two purposes, ITC can only be claimed for the business portion of the expenses.
Inquire about other Government benefits
Besides the lower GST rate, the government sometimes offers additional incentives for electric vehicles. Make sure to explore if any state subsidies or grants are available when you buy an electric vehicle.
Moreover, If you want any other guidance relating to GST Return Filing or GST Updates, please feel free to talk to our business advisors at 8881-069-069.
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