Looking for the updates of the 36th GST Council Meeting? Here are the most important ones-
The 36th GST Council Meeting was held via video conferencing on 27th July,2019 headed by union Finance and corporate affairs minister Smt. Nirmala Sithaaraman. The said meeting was called for to decide on slashing the GST rates on Electrical vehicles to support the Electric Vehicle manufacturers as the budget declared direct tax benefits to the taxpayers in order to encourage the use of electrical vehicles.
GST rates cut for Electrical Vehicles:-
- The GST rates for all the electric Vehicles is reduced to 5% while earlier it was 12%
- The GST rate on charger or charging stations for Electric vehicles be reduced from 18% to 5%.
- Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.
- These changes shall become effective from the 1st August, 20.
The government presently charges a tax rate of 28% on the vehicles that run on petrol and diesel. The use of electric vehicles across India is still at a nascent stage. Enough incentives for the manufacturers would help boost supply and in turn, the demand for the same. The tax incentives for buying electric vehicles can encourage demand for electric vehicles. However, the prices of electric vehicles are on an average basis higher than the price of vehicles run on petrol.
Changes in the GST Law.
- Last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 (by exclusive supplier of services), to be extended from 31.07.2019 to 30.09.2019.
- WhileThe last date for furnishing statement containing the details of the self-assessed tax in FORM GST CMP-08 for the quarter April, 2019 to June, 2019 (by taxpayers under composition scheme), to be extended from 31.07.2019 to 31.08.2019.
The decisions taken in the 36th GST Council Meeting regarding the reductions in GST rates will definitely help boost the use of electric vehicles a little however, it may take some time to see noticeable rise in the demand of the electric Vehicles. There will not be an immediate rise in the demand of the electric vehicles as the cost of the electric vehicles currently are higher in comparison to petrol and diesel vehicles.
The next i.e. 37th GST Council meeting will be held on 20th september 2019 in Goa.
Hope this article was helpful. Refer to the topics discussed in the 37th GST council meeting.
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