As expected, the GST council has slashed rates on electric vehicles to boost its sell. This comes closely on heels of Budget announcement where additional tax benefit was offered for individuals buying electric vehicles.  The high-powered GST Council on Saturday decided to reduce the tax rate on electric vehicles (EVs) to 5% from the existing 12%, effective from August 1.

It also slashed the Goods and Services Tax (GST) on EV chargers from 18% to 5%, an official statement said after the 36th meeting of the council. The meeting, chaired by Finance Minister Nirmala Sitharaman, was held via video conferencing. The council also approved GST exemption for hiring of electric buses by local authorities. This is only valid for buses with capacity of more than 12 passengers. 

Changes in GST law:

Last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax have been extended from 31st July to 30th September. The last date for furnishing statement containing the details of the self-assessed tax in FORM GST CMP-08 for the Q1 quarter extended till 31st August. 

With agency and PIB inputs