EV battery charging is a taxable service under GST, classified under SAC 998714 with input tax credit available under the rules.

Electric vehicle battery charging is treated as a supply of service under GST, not as a supply of electricity as goods, because the charging station uses electricity internally to convert energy for the battery and the consumer receives a charging facility rather than a direct sale of electricity. The activity is classified under SAC 998714, covering battery charging and related maintenance or repair services for transport equipment, and attracts GST at 18%. Input tax credit may be claimed and utilised in accordance with the GST provisions and the credit apportionment rules, including Rules 42 and 43.

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Issues: (i) Whether charging of electric vehicle batteries constitutes supply of electricity as goods or supply of service; (ii) Whether the activity is classifiable under SAC 998714 and liable to GST at 18%; (iii) Whether GST collected can be adjusted as input tax credit under the GST Rules.

Issue (i): Whether charging of electric vehicle batteries constitutes supply of electricity as goods or supply of service.

Analysis: The charging station does not supply electricity to the consumer as such. Electricity is consumed within the charging station for conversion of electrical energy into chemical energy stored in the battery. The recipient only the charging facility and not a sale of electricity in the usual sense. The activity therefore falls within supply of service under the GST framework and not supply of goods or exempt electricity supply.

Conclusion: The activity is supply of service and not supply of electricity as goods.

Issue (ii): Whether the activity is classifiable under SAC 998714 and liable to GST at 18%.

Analysis: The service is covered by the scheme of classification of services under maintenance and repair services of transport machinery and equipment, which includes battery charging services for motor cars. Electric vehicles were treated as falling within that service description. Accordingly, the relevant rate entry under the GST rate notification applies.

Conclusion: The activity is classifiable under SAC 998714 and attracts GST at 18%.

Issue (iii): Whether GST collected can be adjusted as input tax credit under the GST Rules.

Analysis: The question was answered with reference to the availability and utilisation of input tax credit under the statutory credit provisions and the apportionment rules under the GST Rules.

Conclusion: Input tax credit may be availed and utilised in accordance with the GST provisions and Rules 42 and 43.

Final Conclusion: EV battery charging was held to be a taxable service, not exempt electricity supply, and the service was brought within the specified service classification with GST consequences and credit availability under the GST law.

Ratio Decidendi: Where electricity is consumed within a charging station to charge an electric vehicle battery and the consumer receives the charging facility rather than a direct supply of electricity, the transaction is a taxable supply of service under GST.

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