The GST Council is likely to discuss hiking Goods and Services Tax (GST) on old and used electric vehicles, reported CNBC-TV18 citing sources on December 16.
The Council is also likely to discuss GST hike for small petrol and diesel cars to 18% from 12%, the channel reported.
CNBC-TV18 said the fitment panel has recommended raising GST on used EVs to 18% from 12%.
Petrol cars over 1,200 cc, diesel cars over 1,500 cc and SUVs are already taxed at 18%.
New EVs are currently taxed at 5% GST but used EVs are taxed at 12% GST.
The 55th GST Council meeting will be held on December 21, 2024 at Jaisalmer, Rajasthan.
Recently, Central Board of Indirect Taxes and Customs (CBIC) said the GoM on GST rate rationalisation is yet to submit its recommendations to the GST Council, which is the final decision making body in fixation of tax rates. There are reports in which it is being said that the Group of Ministers (GoM) recommendations on GST rate changes regarding various goods and services including a hike on tax on sin goods like aerated beverages, cigarettes, tobacco and related products to 35% from the present 28%.
Meanwhile, according to reports, the Group of Ministers (GoM) on rate rationalisation under Bihar Deputy Chief Minister Samrat Chaudhary decided to rationalise tax rates on apparel. As per the decision, readymade garments costing up to Rs 1,500 would attract 5% GST, those between Rs 1,500 and Rs 10,000 would attract 18%. Garments costing above Rs 10,000 would attract 28% tax. In total, the GoM on rate rationalisation will propose tax rate tweaks on 148 items to the GST Council.
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