The 36th GST Council Meeting was recently held under the chairmanship of Union Finance Minister.
The GST Council has decided to reduce Goods and Services tax(GST) rate on electrical vehicles(EVs) from 12% to 5% and on EV chargers from 18% to 5% from August 1,2019.
The Council has also approved GST exemption for hiring of electric buses by local authorities.
The central government has been taking initiative to popularise environment friendly electric vehicles.In the Union Budget 2019-20,the government has provided additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase EVs.
Further,the Centre has also approved Rs 10,000 crore to encourage faster adoption of EVs in the country under the FAME II scheme.The scheme aims to encourage faster adoption of such vehicles by right incentives and charging infrastructure.
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. 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.