An important meeting of the GST Council is going to be today, in which tax reduction on electric vehicles can be approved. Apart from this, the Council of Goods and Services Tax (GST) will also discuss several other important issues.
According to the Ministry of Finance, this 36th meeting of the GST Council will be held on Thursday at 3 pm with video conferencing. It will be the second meeting of the Council to be headed by Finance Minister Nirmala Sitharaman. Prior to this, he had joined the June 21 meeting. Regarding tax rates on electric vehicles, chargers and rental of these vehicles, the FIT Committee has recommended that the GST Council will consider.
The tax rate on electric vehicles is reduced from 12 to 5 percent, the charger is reduced from 18 to 5 percent and hiring from 18 to 5 percent. Apart from this, GST Council will also consider the case of solar power generating systems and wind turbines. About this, the recommendation of the fitment committee will be placed in front of GST Council. Apart from this, there is also a similar GST rate across the country on the lottery lottery which the council will consider.
In the meeting of the 21st June, the committee had said that the committee on the GST concessions will conduct the inquiry and its recommendation will be kept in the next meeting. If GST rates are reduced on electric vehicles, then it will be the second major step in promoting e-vehicles within a month.
Earlier on July 5, Finance Minister Nirmala Sitharaman had said in his budget speech that people who purchase electric vehicles will get the benefit of income tax deduction up to Rs 1.5 lakh on the interest payment of their loans. The government is already working on the proposal to free parking on electric vehicles and not toll tax.
These movements of the government will be to car companies such as Mahindra, Hyundai, Tata, BMW and electric vehicle companies like Hero Electric, Revolt Intellectorpe, Kinetic Green, Torque Motors. Modi government also wants to promote domestic manufacturing of e-vehicles.
Finance Minister Nirmala Sitharaman also said in his budget speech that he wants to make the hub of electric vehicles in India. For this, infrastructure like battery, charging point is being worked fast on. The government is also considering making special lanes on the highway for electric vehicles and can be decided soon.
