Electric Vehicles Get Preferential GST of 5% Over Diesel and Petrol which Continue at 18%

· GST Rate on All Electric Vehicles Reduced from 12% to 5% and of Charger or Charging Stations for EVs from 18% to 5%

· Hiring of Electric Buses by Local Authorities Exempted from GST

· Changes in GST Rates shall be Effective from 1st August, 2019

[MoF Press Release dated 27.07.2019]

The 36^th GST Council Meeting was held on Saturday, 27 July 2019 Via Video Conference under the chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Anurag Thakur besides Revenue Secretary Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. The Council has recommended the following:

A. GST rate related changes on supply of goods and services

i. The GST rate on all electric vehicles be reduced from 12% to 5%.

ii. The GST rate on charger or charging stations for Electric vehicles be reduced from 18% to 5%.

iii. Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.

iv. These changes shall become effective from 1^st August, 2019.

B. Changes in GST law:

1. Last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 (by exclusive supplier of services), to be extended from 31.07.2019 to 30.09.2019.

2. The last date for furnishing statement containing the details of the self-assessed tax in FORM GST CMP-08 for the quarter April, 2019 to June, 2019 (by taxpayers under composition scheme), to be extended from 31.07.2019 to 31.08.2019.

(Note: The recommendations of the GST Council have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/Notifications which alone shall have the force of law.)