Speaking in the Lok Sabha, Minister of State for Finance, Anurag Thakur on Monday informed that the Goods and Services Tax (GST) Council will consider reducing tax on electric vehicles, which are seen as more environment-friendly.
Thakur was replying to a question asked by BJP member Varun Gandhi during the Question Hour. “The matter has been placed before the GST Council and will be considered. As of now, it is pending before the council,” Thakur said.
He added the number of tax filers has doubled under the GST, and it shows that people’s trust in the new tax regime has increased.
He further stated the council has taken several decisions since the Goods and Services Tax, which has brought many indirect taxes levied by states and the Centre under one regime, was rolled out in 2017 to simplify the exercise and also to benefit traders, including Ministry of Micro, Small and Medium Enterprises (MSME) sector.
Earlier, The Ministry of Road Transport and Highways (MORTH) has initiated steps for providing for differential registration fees under the Central Motor Vehicles Rules 1989 to give a boost to Electric Vehicles in the country.
The MORTH has issued a draft notification dated 18th June 2019 vide Gsr 430 (E), to amend Rule 81 of CMVR. The amendment proposes to exempt Electric Vehicles from payment of fees for the purpose of issue or renewal of registration certificate and assignment of the new registration mark. This means that Electric Vehicles would be exempted from such registration charges. The draft has been issued for receiving comments and suggestions from stakeholders.
However, Government is expected to reduce the Goods and Services Tax (GST) on electric vehicles to 5% from 12% to provide a stimulus to the sector that’s a high priority of the newly formed Modi government. Reportedly, the GST Council is set to take up the proposal at its June 20 meeting.
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