GST Council Decides To Reduce Rate On Electric Vehicles To 5% From August 1

1. Currently, the rates applicable to electric vehicles and their chargers stand at 12 per cent and 18 per cent respectively. 
2. The GST Council also decided to exempt the hiring of electric buses of carrying capacity beyond 12 passengers by local authorities from the indirect taxation regime. 
3. The GST rate applicable to charging stations for electric vehicles was also reduced from 18 per cent to 5 per cent.
4. The Council announced an extension in the due date for filing of the form GST CMP-02 in order to opt for the composition scheme under GST laws. 
5. Now, assessees will be able to opt for the composition scheme under the GST law using the form CMP-02 by September 30, instead of the original due date of July 31. 
6. The Council also decided to extend the last date for furnishing the statement containing details of self-attested tax using the form GST CMP-08 for the June quarter by one month to August 31. 
7. The CMP-02 and CMP-08 forms come under the GST composition scheme.
8. Under the composition scheme, traders and manufacturers are required to pay only one per cent GST on goods which otherwise attract a higher levy of either 5, 12 or 18 per cent. Such dealers are also not permitted to charge GST from the purchaser.
9. In the Union Budget for 2019-20, the Finance Minister proposed a deduction of Rs. 1.5 lakh in taxable income on the interest paid on loans taken to purchase electric vehicles. 
10. Saturday's meeting of the GST Council, chaired by the Finance Minister, was held through video conferencing.

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