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GST Council likely to consider tax structure for electric vehicles, solar power projects
Jul-22-2019

The Goods and Services Tax (GST) Council, in its 36th meeting to be held on July 25, is likely to decide on lowering tax rates for electric vehicles (e-vehicles). Earlier, the Council, in its meeting last month, had referred the issue relating to GST concessions on electric vehicle, electric chargers and hiring of electric vehicles, to an officers committee. The recommendations of the officers committee are likely to be placed before the Council on July 25.

In order to push domestic manufacturing of e-vehicles, the Centre proposed to the Council to slash GST rates to 5% from 12%. Besides, GST rate for petrol and diesel cars and hybrid vehicles is already at the highest bracket of 28% plus cess.

The Council, chaired by Finance Minister Nirmala Sitharaman, will also consider tax structure for solar power projects. In May, the Delhi High Court had asked the GST council to take a relook at the taxation structure following industry petition. The solar industry has been pitching for a different ratio for splitting goods and services for levying GST.

The Council may also look at taxation of lotteries. In the previous meeting, the Council had decided to seek legal opinion of the Attorney General for levying GST. Currently, a state-organised lottery attracts 12% GST, while a state-authorised lottery attracts 28% tax.

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