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GST Council to meet Today: Tax Rates on EVs and Lottery to be finalized

36th GST Council will be held today (25th July, 2019) through video conferencing in Delhi by Finance Minister Nirmala Sitharaman.

After union budget, this will be the first GST Council meeting placed before the Parliament.

In Today’s council, we can expect the announcement of finalization of decision related to these three issues i.e.:

  • Lowering tax rates for electric vehicles

The Modi government wants to encourage domestic manufacturing of e-vehicles. FM Sitharaman had also said in her Budget speech that the government wants to develop India as a manufacturing place for electric vehicles and want to encourage their purchase.

Hence, after reduction in custom duties for certain components, the government is now expected to reduce the GST rate on EVs from 12% to 5%.

GST rates on petrol and diesel cars and hybrid vehicles are already at the highest of 28% plus cess.

Read more about GST on Electric vehicle :

  •  Rationalization of GST rates on lottery –

In the last council meeting, the council had asked for legal opinion from the Attorney General on the issue.

At present, there are two rates of GST on lottery. A 12% GST is levied on lottery run by state government and 28% GST is levied on lotteries authorized by state government.

In this meeting we can expect that govt. is likely to consider the advise of the Attorney General and fix the rate for lottery by merging the two rates, and also consider bringing that rate down to 12%.

  • Ease tax issues for the solar sector (solar power projects) – 

It is further expected to considering the tax issues for providing ease to the solar sector.

As this GST Council meeting will take place through video conferencing mode, it doubtful to consider and discuss other issues as the members prefer to discuss them in person.

Last council meeting

  • In the earlier GST council, it was proposed to take up these issues and in the union budget also it was discussed to provide various tax benefits to EVs (Electric vehicles) by reducing the tax rates and finalize the GST rates on lottery tickets.
  • GST annual return due date was extended for the financial year (FY) 2017-18 till 31 August 2019.
  • The tenure of National Anti-profiteering Authority (NAA) was also extending by two years.
  • Imposition of 10 % penalty for delay in depositing the profiteered amount by more than 30 days was approved.
  • Use of Aadhaar by businesses to register with GST Network (GSTN).
Author: Niranjan Reddy

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