The GST rate cut on electric vehicles (EVs) and related equipment will have to wait after the GST Council meeting scheduled for Thursday was postponed, as finance minister Nirmala Sitharaman was required to attend Parliament for the scheduled passage of amendments to the Insolvency and Bankruptcy Code. The meet is now scheduled to be held on Saturday (July 27).
The 36th GST Council meeting, which was to be held through video conferencing, was called to specifically consider the proposal to slash the GST rate to 5% from 12% on EVs. In the last council meeting, the proposal was referred to a committee of officials called ‘fitment committee’ for preparing recommendation.
Apart from EVs, the fitment committee is likely to recommend concessional rates on electric chargers and hiring of EVs. A government official said that since EVs are not sold in any significant volume, the rate cut and its impact on revenue wouldn’t be a concern for the GST Council. GST rate for petrol and diesel cars, and hybrid vehicles is already taxed at the highest rate of 28% along with an additional cess.