Council may consider GST cut on EVs

5 min read
  1. GST Council may cut the goods and services tax(GST) on electric vehicles to 5% from 12% to provide a stimulus to the sector.
  2. The lower rate are expected to encourage global manufacturers to invest in India’s planned shift to electric vehicles in order to try and bring down pollution levels.
  3. The Niti Aayog has prepared a roadmap that envisages all vehicles sold after 2030 being electric.The roadmap lays down that all two-and three wheelers should go electric from 2023 and all commercial vehicles from 2026.
  4. GST (Goods and Services Tax) is an indirect tax that has replaced many Central and State taxes like excise duty, VAT and service tax.It is a single comprehensive tax levied on all goods and services produced in India as well as those imported from other countries.
  5. Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.GST Council is a joint forum of the Centre and the States.
  6. It consists of the following members:(a) The Union Finance Minister is the Chairperson (b) The Union Minister of State, in-charge of Revenue of finance and (c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government.

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