GST Council to slash GST rates to 5%from 12%on electric vehicles

The GST Council, chaired by Finance Minister Nirmala Sitharaman, meeting on July 25, is likely to lower tax rates for electric vehicles. 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 GST concessions on electric vehicle, 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 25 July.

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

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