{"id":5758,"date":"2019-07-30T16:02:15","date_gmt":"2019-07-30T10:32:15","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=5758"},"modified":"2020-12-16T14:43:22","modified_gmt":"2020-12-16T09:13:22","slug":"gst-council-reduces-rate-on-electric-vehicles-slashed-from-12-to-5","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/gst-council-reduces-rate-on-electric-vehicles-slashed-from-12-to-5\/","title":{"rendered":"GST Council reduces rate on Electric Vehicles slashed from 12% to 5%, effective from 1st August"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In an endeavour to encourage the adoption of electric vehicles, the GST council on 27<sup>th<\/sup> July 2019, Saturday, decided to cut the tax rates on electric vehicles.  The GST on Electric Vehicles has been slashed from 12% to 5% and will be effective from 1<sup>st<\/sup> August 2019.   <\/p>\n\n\n\n<p>The 36<sup>th<\/sup> GST Council took place through video conference under the <strong>chairmanship of Nirmala Sitharaman<\/strong> <a href=\"https:\/\/twitter.com\/nsitharaman?lang=en\">[1]<\/a> , Union Finance &amp; Corporate Affairs Minister. <\/p>\n\n\n\n<p>Besides, Ajay Bhushan Pandey- the Revenue Secretary, Anurag Thakur- Union Minister of State for Finance &amp; Corporate Affairs, and other senior officials of the Ministry of Finance also attended the meeting. <\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background\" href=\"https:\/\/swaritadvisors.com\/gst-return-filing\" style=\"background-color:#01669c\">Filling GST Return Today- Apply Now<\/a><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a61cbd90ba\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a61cbd90ba\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/gst-council-reduces-rate-on-electric-vehicles-slashed-from-12-to-5\/#Main_Highlights_of_the_36th_GST_Council_Meeting\" title=\"Main\nHighlights of the 36th GST Council Meeting\">Main\nHighlights of the 36th GST Council Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/gst-council-reduces-rate-on-electric-vehicles-slashed-from-12-to-5\/#Possible_Impacts_of_reduced_GST_on_Electric_Vehicles\" title=\"Possible\nImpacts of reduced GST on Electric Vehicles \">Possible\nImpacts of reduced GST on Electric Vehicles <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/gst-council-reduces-rate-on-electric-vehicles-slashed-from-12-to-5\/#Tweets_related_to_GST_rate_cut_on_Electric_Vehicle\" title=\"Tweets\nrelated to GST rate cut on Electric Vehicle\">Tweets\nrelated to GST rate cut on Electric Vehicle<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Main_Highlights_of_the_36th_GST_Council_Meeting\"><\/span>Main\nHighlights of the 36<sup>th<\/sup> GST Council Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To accelerate the adoption of eco-friendly electric vehicles, the government has taken a great move. There has been an immense cut on GST rates on electric vehicles. Apart from this, there were several other announcements in the meeting which we have described below. <\/p>\n\n\n\n<p><strong>The highlights of the 36<\/strong><sup><strong>th<\/strong><\/sup><strong> GST Council Meeting are as follows:<\/strong><\/p>\n\n\n\n<ol><li><strong>GST rates on EVs (Electric Vehicles) <\/strong>will get reduced to <strong>5% from 12% from 1<\/strong><sup><strong>st<\/strong><\/sup><strong> August 2019<\/strong>.<\/li><li>The <strong>chargers of electric vehicles<\/strong> will be reduced from 18% to 5%.<\/li><li><strong>GST exemption for local authorities<\/strong> hiring electric buses.<\/li><li>The GST Council has announced an extension for the <strong>filing of the GST form CMP-02<\/strong> in the due date for the <strong><a href=\"https:\/\/swaritadvisors.com\/learning\/composition-scheme-under-gst-act\/\" class=\"text-primary\">composition scheme under GST<\/a> laws<\/strong>. <\/li><li>Instead of the <strong>due date of 31<\/strong><sup><strong>st<\/strong><\/sup><strong> July,<\/strong> assesses can now use the form <strong>CMP-02 by 30<\/strong><sup><strong>th<\/strong><\/sup><strong> September<\/strong> and opt for the composition scheme under the GST law.<\/li><li>Furthermore, the council has decided to extend the <strong>last due date for filing GST CMP-08 Form <\/strong>for furnishing the statement which contains the particulars of self-attested tax for the June quarter by one month to 31<sup>st<\/sup> August.<\/li><li>The <strong>forms CMP-02 and CMP-08<\/strong> fall under the <strong>GST Composition Scheme<\/strong>. <\/li><li>In her <strong>Maiden Budget 2019<\/strong>, the <strong>Finance Minister<\/strong> proposed a deduction of <strong>Rs. 1.5 lakh<\/strong> in taxable income on the interest paid on loans taken to purchase electric vehicles. <\/li><li>Under the <strong>composition scheme<\/strong>, manufacturers and traders will now have to pay only <strong>1% GST on goods<\/strong> which otherwise entice a levy of higher taxes of either <strong>5%, 12% or 18%<\/strong>. Moreover, such dealers won\u2019t be able to charge <strong>GST from the purchaser<\/strong>.<\/li><\/ol>\n\n\n\n<p class=\"text-left\"><b>Also, Read<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/gst-on-travel-agents-and-tour-operators\">GST On Travel Agents and Tour Operators<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Possible_Impacts_of_reduced_GST_on_Electric_Vehicles\"><\/span>Possible\nImpacts of reduced GST on Electric Vehicles <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As a result of reduced rates of GST on Electric Vehicles, people will now make an approach toward buying EVs. <gwmw style=\"display:none;\"><\/gwmw><\/p>\n\n\n\n<p>The main motive of <strong>reducing the tax on EVs<\/strong> is to promote pollution control and make the environment eco-friendly.&nbsp; <\/p>\n\n\n\n<p>With\nthe use of electric vehicles, the country could be able to reduce the\npercentage of air pollution it generates every year. Not only this, but it\ncould also push the country\u2019s economy a little up, depending on where EVs are\nbeing manufactured. <\/p>\n\n\n\n<p>The government has put all its efforts into making EVs quite affordable. However, there arise several questions in front of the government-<\/p>\n\n\n\n<ul><li>How many electric vehicles are actually being manufactured in India? <\/li><li>Is there any proper infrastructure for the same? <\/li><li>Does the country have enough charging stations for electric vehicles? <\/li><li>Will it really contribute to the nation&#8217;s growth?<\/li><li>How many companies in the future are going to produce Electric Vehicles?\u00a0 <\/li><\/ul>\n\n\n\n<p>If the government has solutions to all of these, then it\u2019s good to go with the change. Otherwise, nothing can be predicted as of now. The actual situation will be observed only after the tax rates are effective. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tweets_related_to_GST_rate_cut_on_Electric_Vehicle\"><\/span>Tweets\nrelated to GST rate cut on Electric Vehicle<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Basant Maheshwari<\/strong>, the Investor, and Author of &#8216;The Thoughtful Investor&#8217; expressing his view on the rate cut on EVs, said that-<\/p>\n\n\n\n<blockquote class=\"twitter-tweet\" data-lang=\"en\"><p lang=\"en\" dir=\"ltr\">Lowering GST and other charges on Electric Vehicles won\u2019t create demand for EVs.There is just no infrastructure. People won\u2019t change preferences like that plus EVs aren\u2019t cheap. However, it will surely lead to a fresh bout of short selling in the frontline auto names? That\u2019s all.<\/p>\u2014 Basant Maheshwari (@BMTheEquityDesk) <a href=\"https:\/\/twitter.com\/BMTheEquityDesk\/status\/1155314952158105600?ref_src=twsrc%5Etfw\">July 28, 2019<\/a><\/blockquote>\n<script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n\n\n\n<p>However, <strong>Sandip Sabharwal<\/strong>, an investor advisor wrote- <\/p>\n\n\n\n<blockquote class=\"wp-block-quote twitter-tweet\"><p lang=\"en\" dir=\"ltr\">Reducing GST on EVs to 5%<br>Giving tax break on interest<br>Might look good but creates a significant market distortion<br>Incentives should be on production not buying.<br>This way it will be all &#8220;Import from China&#8221; once again a la Solar Power rather than <a href=\"https:\/\/twitter.com\/hashtag\/MakeInIndia?src=hash&amp;ref_src=twsrc%5Etfw\">#MakeInIndia<\/a> <a href=\"https:\/\/twitter.com\/PMOIndia?ref_src=twsrc%5Etfw\">@PMOIndia<\/a>\u2014 sandip sabharwal (@sandipsabharwal) <a href=\"https:\/\/twitter.com\/sandipsabharwal\/status\/1155125148673929216?ref_src=twsrc%5Etfw\">July 27, 2019<\/a><\/p><\/blockquote>\n\n\n\n<script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n\n\n\n<p>From\nthe above tweets, it is quite apparent that most of the people are criticizing\nthe decision of the government. And the debate will continue until the actual\nresult comes. Till then, stay tuned with us, we will keep you updated. <\/p>\n\n\n\n<div class=\"read\"><p><b>Read,Also:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/\">33rd GST council meeting updates<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In an endeavour to encourage the adoption of electric vehicles, the GST council on 27th July 2019, Saturday, decided to cut the tax rates on electric vehicles. The GST on Electric Vehicles has been slashed from 12% to 5% and will be effective from 1st August 2019. The 36th GST Council took place through video [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":5776,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,1],"tags":[1062],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5758"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=5758"}],"version-history":[{"count":20,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5758\/revisions"}],"predecessor-version":[{"id":17858,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5758\/revisions\/17858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/5776"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=5758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=5758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=5758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}