New Delhi: The 36th Goods and Services Tax (GST) meeting will be held today, on July 25, in Delhi making it the first GST Council meeting after the Union Budget was tabled on July 5.
The meeting will be chaired by Finance minister Nirmala Sitharaman through videoconferencing in Delhi. The Council is expected to draw focus on lowering tax rates on electronic vehicles (EVs), solar power projects as well as rationalising tax rates on lottery.
GST rates on Electric vehicles:
Following the announcement of several sops for the EV sector including Income Tax exemption and reduction in customs duties for certain components, the government is now expected to push for a further reduction of GST rate cut from 12 % to 5 %.
With this, the Modi government aims to encourage indigenous manufacturing of e-vehicles. The GST rate for petrol, diesel and hybrid cars is at the highest bracket of 28 %.
The GST Council will also look at the taxation of lotteries. At present, the GST rate on lottery falls under two brackets. A 12 % GST is levied on lottery run by the state government and 28 % GST is levied on lotteries authorised by the state government. The council had in the last meeting sought a legal opinion on the issue from the Attorney General.
Outcomes of the 35th GST Council Meeting:
In the previous Council meeting held on June 21, GST annual return due date for the financial year (FY) 2017-18 was extended by two months till 31 August 2019.
In order to ease the process of GST registration and reduce the paperwork involved, GST Council had also given a go-ahead to a new system for verification of taxpayers by introducing an Aadhaar-enabled GST registration.
Extending the tenure of National Anti-profiteering Authority (NAA) by two years, GST Council had also approved a levy of 10 % penalty for delay in depositing the profiteered amount by more than 30 days.
Meanwhile, several other industries had demanded that the GST be expanded to all sectors.