- GST Council may cut the goods and services tax(GST) on electric vehicles to 5% from 12% to provide a stimulus to the sector.
- 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.
- 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.
- 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.
- 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.
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