36th GST Council Important Updates

Akash Dubey

22 Mar, 2021

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

Highlights of the 36^th 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

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 1^st 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.

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.