GST on electric vehicles likely to be reduced to 5%


The government may cut  the goods and services tax (GST) on electric vehicles to 5 percent  from the existing 12 percent to provide the stimulus to the sector.


The GST Council is set to take up the proposal at its June 20 meeting, said a senior government official aware of the development. “There is a proposal to cut tax rates on EVs among other issues,” the official said to an English daily.

Earlier, the report added, Punjab finance minister Manpreet Badal has suggested to the union finance minister and GST Council chairman Nirmala Sitharaman that tax rates for these sectors need to be lowered to address the slowdown.

The report said that the state had sought new rates for automobiles, textiles, micro, small and medium enterprises (MSMEs) and real estate to provide a boost to the economy that has witnessed a slowdown recently.

The meeting is expected to take up several changes to the GST law to check tax evasion said the report.

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the NBFCs and Insurance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.