Viewing to push domestic manufacturing of e-vehicles, 36th GST Council meet to decide over lowering tax rates

New Delhi, July 22: Deciding over the valuation of goods and services in solar power generating systems and wind turbine projects for the purpose of levying GST, the council chaired by FM Nirmala Sitharaman slates to push domestic manufacturing of e-vehicles, further deciding over the tax rates.

 

 

The Centre had earlier this year said that for the purpose of taxing solar power projects, 70 per cent of contract value would be treated as goods, taxable at 5 per cent and balance 30 per cent as services, taxable at 18 per cent. The solar industry has been pitching for a different ratio for splitting goods and services for levying GST.

 

However the, Council, which has state finance ministers as members, in its meeting last month, had referred the issue relating to Goods and Services Tax concessions on electric vehicle, electric chargers and hiring of electric vehicles, to an officers committee.

 

The Delhi High Court, back in May had asked the GST council to take a relook at the taxation structure following industry petition, while the GST rate for petrol and diesel cars and hybrid vehicles is already at the highest bracket of 28 per cent plus cess.

 

Further, the Council is set to look at taxation of lotteries. Currently, a state-organised lottery attracts 12 per cent GST, while a state-authorised lottery attracts 28 per cent tax.