GST

36th GST Council Important Updates

36th-GST-Council

The 36th GST council meeting concluded with important updates as on 25th July 2019. The Finance Minister Nirmala Sitharaman chaired the meeting.

Highlights of the 36th GST council meet are as follows;

  • The decrease in GST rates on e-vehicles-  Rates have been lowered from 12 per cent to 5 per cent
  • Electric vehicle chargers will be charged at 5 % GST
  • The focus was to ensure the promotion of Electric vehicle manufacturing in the country
36th GST council

The meeting concluded in establishing a favourable tax regime for the e-vehicle manufacturing industry. The GST rate on E-vehicle was reduced significantly from 12 per cent to 5 per cent. The new rates will come into implementation from 1st August 2019. 

Items with Revised GST Rates Before After
Electric charges 18% 5%
Electric vehicles 12% 5%
The revised rate will come into implementation from 1st August 2019

The move to reduce GST is considered as a milestone for nurturing the e-vehicle industry in India. The step will reduce the production cost of e-vehicles in India. Hence, the selling price of the same is also likely to be reduced.

36th-gst-council-meeting-has-reduced-gst-rates-for-electric-vehicles-from-18-to-5-extended-various-due-dates

Various national and international companies are investing in the E-vehicle industry[1]. The notification will further encourage the manufacturers and distributors of the industry.

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