On issues relating to GST concessions on electric vehicle, charger and hiring of electric vehicle, the the 35th GST Council meeting recommended that the issue be examined in detail by the Fitment Committee and brought before the Council in the next meeting.
There were reports that the GST Council Meeting may consider the Government’s proposal to slash Goods and Services Tax ( GST ) on the electric vehicles (EVs) to five per cent. Presently, 12 per cent tax is applicable to such vehicles.
A report in ET said that “There is a proposal to cut tax rates on EVs among other issues,” a government official told the paper. The GST Council will likely discuss this at its meeting on June 20.
Earlier, NITI Aayog has proposed that only EVs will be sold after 2030, a move aimed at reducing carbon emissions. The Centre is also likely to allow the sale of only electric two-wheelers from 2025, reports suggested. A cut in GST for EVs will help the government’s push for electric vehicles.
Automobile manufacturers such as TVS Motor and Bajaj Auto have already expressed their concerns, calling it ‘unrealistic and impractical’.
Last day, the GST Council has extended the tenure of the National Anti-Profiteering Authority (NAA) by a year, to deal with the numerous pending cases.
