News Nation Logo

GST Council to decide on tax cut on electric vehicles this week

The Delhi High Court Had In May Asked The GST Council To Take A Relook At The Taxation Structure Following Industry Petition.

PTI | Updated on: 21 Jul 2019, 05:19:00 PM
Electric vehicles (File Photo)

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 Council, which has state finance ministers as members, in its meeting last month, had referred the issue relating to Goods and Services Tax (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 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.

READ | Mukesh Ambani keeps salary capped at Rs 15 crore for 11th year in a row

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.

READ | Gold prices hit record high nearing Rs 36,000 mark, silver jumps Rs 935

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.

For all the Latest Business News, Download News Nation Android and iOS Mobile Apps.

First Published : 21 Jul 2019, 05:19:00 PM

Videos