Recently, many changes have been made in respect of interest and tax rates, however, the official date of applicability was yet to be announced.
In the last GST council meeting also, it was decided to reduce the tax rate on Electric Vehicles (EVs) and their charges.
Besides that State Bank of India (SBI) has also made few changes by reducing the IPS charges and revision of Fixed Deposit (FD) rates.
Now, it has been announced that such changes will take effect from 1st August, 2019.
Here’s a brief description of the changes in the rates announced recently which will come into effect on August
Reduced GST rate on Electric Vehicles :
As we know about the decisions of cutting down the GST rates on Electric vehicles from 12 per cent to 5 per cent. Also, tax on EV chargers has also been reduced from 18 per cent to 5 per cent.
The GST Council has also approved exemption in cases where local authorities hire electric buses.
All above mentioned changes shall be applicable from 1st August, 2019.
Reduction in State Bank of India IMPS charges
SBI had already announced that it will not levy transaction charges through RTGS and NEFT for YONO, internet banking and mobile banking customers from 1 July.
Before 1 July, SBI used to charge between Re 1 and ₹5 for transactions through National Electronic Funds Transfer (NEFT) and ₹5-50 for real-time gross settlement (RTGS) route.
Now, SBI will also waive IMPS (immediate payment service) charges for these customers from 1 August.
IMPS is an instant payment service that enables round-the-clock money transfer through the use of mobile app, mobile banking or internet banking.
SBI has announced a waiver on IMPS charges for fund transfer up to Rs. 1,000 through branch banking.
State Bank of India fixed deposit (FD) interest rates
SBI has also decided to reduce the interest rate on Fixed deposits with effect from 1st August, 2019.
Interest rates on fixed deposits having maturity period between 10 to 45 days have been reduced to 5.00 percent from 5.75 percent.
And for time deposits with tenure between 46 days and up to 179 days, the rate is now down at 5.75 percent from 6.25 percent earlier.