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    GST Council to decide on tax cut on EVs this week

    Synopsis

    To push domestic manufacturing of e-vehicles, the Centre proposed to the Council to slash GST rates to 5 per cent from 12 per cent.

    GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on July 25 and decide on lowering tax rates for electric vehicles, officials said.
    The GST Council, chaired by FM Nirmala Sitharaman, will meet on July 25 and decide on lowering tax rates for electric vehicles, officials said. The 36th meeting of the Council, which will happen through video conferencing, is also likely to decide the valuation of goods and services in solar power generating systems and wind turbine projects for the purposes of levying GST.

    The Council, which has state finance ministers as members, in its meeting last month, had referred the issue relating to Goods and Services Tax (GST) concessions on electric vehicle (EV), electric chargers and hiring of electric vehicles, to an officers committee.

    The recommendations of the officers committee is likely to be placed before the Council on July 25, officials said.

    To push domestic manufacturing of e-vehicles, the Centre proposed to the Council to slash GST rates to 5 per cent from 12 per cent.

    GST rate for petrol and diesel cars and hybrid vehicles is already at the highest bracket of 28 per cent plus cess.

    The Council will also consider tax structure for solar power projects.

    The Delhi High Court had in May asked the GST council to take a relook at the taxation structure following industry petition.

    The government had earlier this year said that for the purpose of taxing solar power projects, 70 per cent of contract value would be treated as goods -- taxable at 5 per cent, and balance 30 per cent as services -- taxable at 18 per cent.

    The solar industry has been pitching for a different ratio for splitting goods and services for levying GST.

    Further, the Council may also look at taxation of lotteries. In the previous meeting, the Council had decided to seek legal opinion of the Attorney General for levying GST.

    Currently, a state-organised lottery attracts 12 per cent GST, while a state-authorised lottery attracts 28 per cent tax.
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    10 Comments on this Story

    Nagaraj Navathi383 days ago
    Respected madam., please issue clear guidlines on Gst registration limit., lot of confusion in this field
    Subramanian385 days ago
    Dear Madame, good morning. Kindly reduce the GST to 5% in all the general insurance policies issued by Bajaj alluance and other private insurers and also on the Health Insurance issued by private parties. This will reduce a great burden on the common people.
    I was expecting some more benefits for Senior citizens, but that didn''t happen. You should have reduced the slab limits for all the Senior citizens by 5_7%.
    Also I have observed there is so much lethargy in the Govt offices that a dead person gets pension for more than 10 years even after informing the agencies accordingly. This absolute colossal waste of Govt money when the Govt agencies don''t act on it at the right time. Can you take this action as serious due to which Govt can save more than 1000 crores really otherwise pension is going to a dead person and the money is enjoyed by their nominees.
    Otherwise fix the age limit of pension to ninety years, beyond which no pension will be given like all other overseas countries.
    .
    arindam_cts385 days ago
    LTCG must be removed to encourage investors in Indian stock markets. USA is a better option for investors now with no LTCG.
    The Economic Times