GST rate on electric vehicles, chargers reduced to 5%
29 Jul 2019
1
The GST Council at its meeting on Saturday decided to bring the Goods and Services Tax rate applicable on electric vehicles as well as chargers for EVs to the bare minimum of 5 per cent, in a bid to boost clean mobility in the country.
Effective 1 August 2019, the applicable GST rate on electric vehicles will come down from 12 per cent to 5 per cent while that on EV chargers will come down from 18 per cent to 5 per cent, the GST council stated after the meeting.
The Council also made hiring of electric buses by local authorities tax free. This The exemption is applicable on buses with a carrying capacity of more than 12, as per an official statement.
The Council also said that the 5 per cent tax rate on chargers is applicable to charging stations as well.
The GST Council also announced an extension of the last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax by exclusive supplier of services from 31 July 2019 to 30 September 2019.
The last date for furnishing statement containing details of self-assessed tax by taxpayers, under the composition scheme (in FORM GST CMP-08) for the April-June 2019 quarter to be extended from 31 July 2019 to 31 August 2019.
The 36th meeting of the GST Council was held in New Delhi on Saturday via video conference under the chairmanship of union minister of finance and corporate affairs Nirmala Sitharaman. The meeting was also attended by union minister of state for finance and corporate affairs Anurag Thakur besides revenue secretary Ajay Bhushan Pandey and other senior officials of the finance ministry.
The tax cut is part of the support that policy makers want to give to electric mobility and to reduce the dependence on fossil fuels for transportation. India has committed to contributing to the global efforts to cut down carbon emissions and is taking leadership on this. In 2015, New Delhi announced its climate goal of reducing the emissions intensity of the country's gross domestic product (GDP) by 33-35 per cent by 2030 from 2005 levels. India is also committed to achieving 40 per cent of its cumulative electric power from non-fossil fuel-based energy resources.
India's energy policy stresses on adding renewable and less polluting sources in its energy mix while ensuring access to electricity for all in order to improve quality of life.
The share of electric vehicles in India is negligible at the moment. The government wants to accelerate production of electric vehicles as well as its adoption by consumers through incentives. Finance minister Nirmala Sitharaman had in her FY19-20 budget announced tax relief for purchase of electric vehicles too.
.jpg "RBI keeps repo rate unchanged as focus remains on inflation")
.jpg "Indian Oil, Panasonic team up for lithium-ion cell production in India")
