GST Council trims rate on electric vehicles, chargers to 5 percent

high-powered GST Council on Saturday decided to reduce tax rate on electric vehicles (EVs) to 5 percent from existing 12 percent, a move aimed at accelerating adoption of eco-friendly mobility solutions.

new Goods and Services Tax (GST) rate on EVs will be effective from August 1, finance ministry said in a statement after 36th meeting of GST Council. GST rate on all EVs has been reduced from 12 percent to 5 percent. Additionally, tax rate on chargers or charging stations for EVs has been slashed from 18 percent to 5 percent.

council also approved GST exemption for hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities from August 1, statement said. meeting, chaired by Finance Minister Nirmala Sitharaman, was held via video conferencing.

GST Council, headed by union finance minister, has state finance ministers as members. It also took certain decisions regarding changes in GST law.

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last date for filing of intimation, in Form GST CMP-02, for availing option of payment of tax (by exclusive supplier of services) has been extended from July 31 to September 30, statement added.

Furr, last date for furnishing statement containing details of self-assessed tax in Form GST CMP-08 for June quarter (by taxpayers under composition scheme) has been extended to August 31. earlier deadline was July 31.

central government has been taking initiative to popularise environment-friendly electric vehicles. In Union Budget 2019-20, government provided additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to purchase EVs.

Besides, customs duty has been exempted on certain parts of EVs to furr incentivise e-mobility in country.

Centre has also approved Rs 10,000 crore to encour faster adoption of EVs in country under FAME II scheme, which aims to encour faster adoption of such vehicles by right incentives and charging infrastructure. 

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