GST Council to decide on tax cut on EVs this week

PTI, Jul 21, 2019, 5:22 PM IST

New Delhi: The GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on July 25 and decide on lowering tax rates for electric vehicles, officials said.

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 recommendations of the officers committee is likely to be placed before the Council on July 25, officials said.

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

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.

The Delhi High Court had in May asked the GST council to take a relook at the taxation structure following industry petition.

The government had earlier this year said that for the purpose of taxing solar power projects, 70 per cent of contract value would be treated as goods — taxable at 5 per cent, and balance 30 per cent as services — taxable at 18 per cent.

The solar industry has been pitching for a different ratio for splitting goods and services for levying GST.

Further, the Council may also look at taxation of lotteries. In the previous meeting, the Council had decided to seek legal opinion of the Attorney General for levying GST.

Currently, a state-organised lottery attracts 12 per cent GST, while a state-authorised lottery attracts 28 per cent tax.

Disclaimer:The views expressed in comments section published on Udayavani.com are those of comment writers alone. They do not represent the views or opinions of Udayavani.com, its staff or The Manipal Group, or any entity associated with The Manipal Group. Udayavani.com reserves rights to remove a comment or all the comments any time.

To report any comment you can email us at udayavani.response@manipalgroup.info. We will review the request and delete the comments.


Related Articles

Latest Additions