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GST council decided to reduced tax on e-vehicles

GST council decided to reduced tax on e-vehicles

The GST Council has decided to reduce the rate of tax on electric vehicles from 12 percent to 5 percent on July 27, 2019. This meeting was held under the chairmanship of Union Finance Minister Nirmala Sitharaman. This decision will be effective from 1st August. This is the 36th meeting of the GST Council.

GST Council also approved the grant of Goods and Services Tax (GST) for rental of electric buses by local authorities. While taking big steps towards promoting electric vehicles, the central government has reduced GST on this.

Highlights of GST Council Decision

  • The objective of the government is that by 2025, there are 30 percent electric vehicles of the vehicles in the country.
  • This will also boost sales of automobile companies.
  • Union Finance Minister Nirmala Sitharaman had said the tax exemption of Rs 1.5 lakh on electric vehicles in 2019-20.
  • This will help companies to attract people towards electric vehicles.
  • GST Council decision, Electric vehicles GST reduced from 12 percent to 5 percent.
  •  However, the GST was reduced from 18 percent to 5 percent on the charger.
  • The council has decided not to levy GST on electric buses leased from Local Authorities.
  • Earlier, the meeting of GST Council was to be held on July 25, 2019, but later it was postponed due to some reasons.
  • The finance minister was scheduled to attend the Rajya Sabha in the ongoing budget session in the parliament to discuss the bankruptcy and bankruptcy code (IBC) bill, due to which the meeting was postponed.


  • Prior to the general budget, the tax rebate was announced on the purchase of electric cars earlier.
  • Earlier, in the 35th meeting of the GST Council on June 21, the matter of GST reduction on e-Vehicle was sent to the Rating Committee.
  • On behalf of this committee, the tax was agreed on tax deduction.
  • Earlier, the Central Government also announced the increase in registration fees of petrol diesel trains.
  • It will also promote electric vehicles.
  • The companies that manufacture electric vehicles were demanding a cut in GST rates for a very long time.
Q.1 Who headed the 36th meeting of GST Council?
A. Narendra Modi
B. Rajnath Singh
C. Nirmala Sithraman
D. Arun Jaitly
Ans: Nirmala Sithraman
Q.2 On what kind of vehicles, GST Council decided to reduce tax?
A. Petrol Vehicles
B. Diesel Vehicles
C. e-Vehicles
D. Gas Vehicles
Ans: e-Vehicles

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