(Representative image)

NEW DELHI: The GST Council on Saturday decided to reduce GST rate on electrical vehicles (EVs) from 12 per cent to 5 per cent and on EV chargers from 18 per cent to 5 per cent from August 1, 2019, an official statement said after the 36th meeting of the council. The move is aimed at accelerating the adoption of eco-friendly mobility solutions.

The Council also approved GST exemption for hiring of electric buses by local authorities.

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The meeting, chaired by finance minister Nirmala Sitharaman, was held via video conferencing.

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

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

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In the 35th GST Council meeting, held on June 21, the Council had proposed to reduce GST rate on electric vehicles to 5 per cent from 12 per cent and that on chargers for e-vehicles to 12 per cent from 18 per cent to the fitment committee for fine-tuning.

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Meanwhile, in a move aimed at discouraging petrol and diesel vehicles, the road transport ministry has proposed to hike the fees for registering new petrol or diesel cars to Rs 5,000 and for renewing their registration to Rs 10,000. Currently, both the charges are Rs 600. The draft notification has also proposed frequent fitness tests of commercial petrol and diesel vehicles and more than 15 year old vehicles would have to be tested twice a year.

The GST Council has also given relief to GST filers by extending the last date for filing of intimation, in Form GST CMP-02, for availing the option of payment of tax (by exclusive supplier of services) from July 31 to September 30. While, the last date for furnishing statement containing the details of the self-assessed tax in Form GST CMP-08 for the June quarter (by taxpayers under composition scheme) has been extended to August 31. The earlier deadline was July 31.

(With agency inputs)



In Video: GST rate on electric vehicles slashed from 12% to 5%