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Last Updated : Jun 19, 2019 03:21 PM IST | Source: Moneycontrol.com

GST on electric vehicles may be reduced to 5 percent: Report

NITI Aayog has proposed that only EVs will be sold after 2030, a move aimed at reducing carbon emmissions. A cut in GST for EVs will help the government’s push for electric vehicles.

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The government is considering slashing the Goods and Services Tax (GST) on electric vehicles (EVs) to 5 percent from 12 percent, according to a report by The Economic Times.

"There is a proposal to cut tax rates on EVs among other issues," a government official told the paper. The GST Council will likely discuss this at its meeting on June 20.

Moneycontrol could not independently verify the story.

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NITI Aayog has proposed that only EVs will be sold after 2030, a move aimed at reducing carbon emissions. The Centre is also likely to allow the sale of only electric two-wheelers from 2025, reports suggested. A cut in GST for EVs will help the government’s push for electric vehicles.

A Reuters report suggests that the government will ask Ola and Uber to make 40 percent of their fleets electric by April 2026.

Automobile manufacturers such as TVS Motor and Bajaj Auto have already expressed their concerns, calling it 'unrealistic and impractical'.

In addition to the proposal on EVs, the GST Council is also likely to extend the tenure of the National Anti-Profiteering Authority (NAA) by a year, to deal with the numerous pending cases.

 
First Published on Jun 19, 2019 03:21 pm
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