GST Rate On Electric Vehicles Drops To 5 Percent From 12 Percent
The central government has been taking initiative to popularise environment friendly electric vehicles
Mumbai: On Saturday, the high-powered GST Council decided to reduce the tax rate on Electric Vehicles to 5 per cent from existing 12 per cent.
The finance ministry said in a statement after 36th meeting of the GST Council that the new Goods and Services Tax rate on EVs will be in effect from August 1st.
The GST rate on all EVs has been reduced from 12 per cent to 5 per cent. The tax rate on charger and charging stations for EVs has also been reduced has been reduced from 28 per cent to 5 per cent.
The meeting, chaired by Finance Minister Nirmala Sitharaman, was held via video conferencing. The GST Council has the state finance ministers as members, the council is headed by the Union Finance minister.
The last date for filing of intimation, in Form GST CMP-02, for availing the option of payment of tax (by exclusive supplier of services) has been extended from July 31 to September 30, the statement added.
Meanwhile, the centre has also approved Rs 10,000 crore for fast adoption of EV in the country under the FAME II scheme, which aims at speeding up such vehicles by proper incentives and charging infrastructure.
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