The 36th GST Council Meeting happened on 27th July 2019 with the prime plan being – decrease of GST rates on Electric Vehicles. The meeting initially scheduled on 25th July 2019 must be conceded to a later date as the Chairperson and Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, was already busy with her duties in the parliament. The 36th GST council, assembled over Video Conference, has recommended the follows:
- Decrease in the GST rate for Electric Vehicle Sector
- Expansion to pick in for Composition Scheme
Boosting the Electric Vehicle segment in India
While trying to give a lift to the eco-friendly option in contrast to the automotive business, the GST board has prescribed GST rate cuts for Electric Vehicle part, as given underneath:
- The GST rate on every electric vehicle will be decreased from 12% to 5%.
- The GST rate on charger or charging stations for Electric vehicles will be decreased from 18% to 5%.
- Hiring of electric buses (of carrying limit of more than 12 travelers) by nearby experts will be exempted from GST.
The Electric Vehicles Sector in India is still in a growing stage and the rate slash may give an even ground to the same to go up against its automobile partners. These adjustments in the GST rates for EV part will be put into impact from 1st August 2019 onwards.
GST updates for Composition Scheme
The GST council has broadened the timeframe for a taxpayer to opt in for composition scheme. The last date for filing of information in form CMP 02 has been moved from 31st July 2019 to 30th September 2019. In any case, such extension is available just for the service providers told under notice No. 2/2019-Central tax (rate) dated 07.03.2019 for a unique Composition Scheme.
Moreover, the due date for paying GST in CMP-08 (for the quarter April-June 2019) for all the composition vendors has been stretched out from July 31, 2019 to 31 August 2019. The extension will give both, the taxpayer just as the GSTN, the much necessary time to plan for form CMP 08 (which is yet to be included on the GSTN portal).
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