GST Council meet updates: The 36th GST Council meet slated to be held Thursday (today) has been postponed. Finance Minister Nirmala Sitharaman was to consider the proposal to slash tax rates on e-vehicles (EVs) from 5% to 12% at the meet. The move is aimed pushing the government's agenda to make non-fossil fuel transport beneficial to buyers. The GST Council chaired by Sitharaman was supposed to meet for the 36th time via video-conferencing. The council was also likely to decide the valuation of goods and services in solar power generating systems and wind turbine projects for the purposes of levying GST.
Follow the GST Council meet live updates on the BusinessToday.In LIVE blog here:
5.13 pm: GST Council meeting which was scheduled for today has been postponed. More details awaited.
GST Council meeting which was scheduled for today has been postponed. More details awaited. pic.twitter.com/peNK4WiENK- ANI (@ANI) July 25, 2019
5.05 pm: Other suggestions include cross-utilisation of CGST and IGST credits, flexibility on GST to restaurants and real estate sectors and streamlining and clarity in the levy of such tax on international transactions.
4.55 pm: The chamber also suggested to the GST Council that sale of scrips issued for different duty drawbacks and market promotion should not be subjected to levy of Goods and Services Tax (GST).
4.45 pm: Assocham said that subsuming mandi tax, stamp duty, road tax and vehicle tax in GST would help streamline businesses and facilitate seamless credit of Input Tax Credit (ITC), which will reduce cascading impact of taxes.
4.35 pm: Industry body Assocham Thursday sought inclusion of petroleum products in GST and subsuming of some local and state taxes like stamp duty. "The two-year period for keeping petroleum products outside GST is almost over. Also, these products being outside GST lead to increase in cost for businesses. Therefore, these products should be brought under GST," stated a memorandum by the chamber to the GST Council.
4.30 pm: The 36th GST Council meeting will begin soon in New Delhi via videoconferencing.
2.23 pm: The share of electric cars in India is only 0.06% currently, whereas is it 2% in China and 39% in Norway. The sales of e-vehicles have been on a rise globally. They have been rising at a fast pace from just over 2,000 units sold in 2008 to over 10 lakh in 2017.
1.55 pm: 36th GST Council meet to be headed by Finance Minister Nirmala Sitharaman to be held shortly, tweets Finance Ministry
The 36th meeting of the GST Council will be held todayJuly 25, 2019
1.50 pm: The Council may also look at taxation of lotteries. In the previous meeting, the Council had decided to seek legal opinion of the Attorney General for levying GST. Currently, a state-organised lottery attracts 12% GST, while a state-authorised lottery attracts 28% tax.
1.45 pm: The solar industry has been pitching for a different ratio for splitting goods and services for levying GST.
1.37 pm: The Delhi High Court had in May asked the GST council to take a relook at the taxation structure following industry petition. The government had earlier this year said that for the purpose of taxing solar power projects, 70 per cent of contract value would be treated as goods -- taxable at 5 per cent, and balance 30 per cent as services -- taxable at 18 per cent.
1.34 pm: GST rate for petrol and diesel cars and hybrid vehicles is already at the highest bracket of 28 per cent plus cess. The Council will also consider tax structure for solar power projects.
1.27 pm: The recommendations of the officers committee is likely to be placed before the Council on 25 July, officials said. To push domestic manufacturing of e-vehicles, the Centre proposed to the Council to slash GST rates to 5% from 12%.
1.10 pm: GST Council Meet: The Council, which has state finance ministers as members, in its meeting last month, had referred the issue relating to Goods and Services Tax (GST) concessions on electric vehicle, electric chargers and hiring of electric vehicles, to an officers committee.