36th GST Council Meeting

36th GST Council Meeting

36th GST Council Meeting

The high-powered 36th GST Council Meeting, headed by Finance Minister Nirmala Sitharaman, took place on the 27th of July, 2019. This is the first Council Meeting to occur since the issuance of the Union Budget 2019. Since the Budget declared direct tax benefits to the taxpayers in order to encourage the use of electric vehicles, this Meeting was primarily called to order to make vital decisions on GST rates on electric vehicles. This article talks about the 36th GST Council Meeting and the various highlights of the same.

Amendments in GST Law

The following is a part of the official press release highlighting the various changes in the GST Law in concern with the Composition Scheme by the GST Council Meeting:

Changes in GST Law:

  1. The last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 (by exclusive supplier of services), to be extended from 31.07.2019 to 30.09.2019.
  2. The last date for furnishing statement containing the details of the self-assessed tax in FORM GST CMP-08 for the quarter April 2019 to June 2019 (by taxpayers under composition scheme), to be extended from 31.07.2019 to 31.08.2019.

The time period given for taxpayers to opt for the Composition Scheme in Form CMP-02 has been extended up to the 30th of September, 2019. However, the benefit of availing the extension has been granted to service providers who are notified under Notification No. 2/2019-Central Tax (Rate) dated the 7th of March, 2019 for a particular Composition Scheme. Previously, the deadline was announced as the 31st of July, 2019 which has now been amended to the 30th of September, 2019.

Additionally, the due date for paying GST charges under Form CMP-08 (for the April-June quarter of 2019) for every composition dealer has been extended to the 31st of August, 2019. This was a much-needed announcement as the Goods and Service Tax Network is yet to make the facility for Form CMP-08 accessible for taxpayers on the GST portal.

GST Rates slashed for Electric Vehicles

The following is a part of the official press release highlighting the various recommendations by the GST Council Meeting for the Electric Vehicle Sector:

Reduction in the GST rate on supply of goods and services:

  • The GST rate on all Electric Vehicles is reduced from 12% to 5%.
  • The GST rate on charger or charging stations for Electric Vehicles is reduced from 18% to 5%.
  • The hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.
  • These changes shall become effective from the 1st of August, 2019.

The GST Council has come to the decision of reducing GST rates on Electric Vehicles from 12% to 5%. Moreover, the GST rates on chargers and charging stations for such electric vehicles have been slashed from 18% to 5%. Additionally, e-Buses, meaning vehicles with seating capacity more than 12 passengers, may now be hired by any local authority without any GST being levied.

These changes will come into effect from the 1st of August, 2019. The annual revenue deficit is estimated to be INR 60 Crores. However, this relatively causes lesser impact. The announcements, along with the provisions of the Union Budget 2019, will give a significant boost to the Electric Vehicle Sector, still in a budding stage, in India.

However, this may take a minimum of 2 years to see a decent rise in the demand for such vehicles. To fasten the whole deal, a smooth collaboration between electric vehicle manufacturers and the Indian Government may aid the growth of such an environment-friendly product. Moreover, the reduction in GST rates will not be followed by an immediate rise in demand as the cost of electric vehicles are currently high in comparison to petrol and diesel vehicles. This rate cut will surely bring down the prices to allow level-playing for the electric vehicle manufacturers.

At a glance

The following are the highlights of the 36th GST Council Meeting.

Due Date Extensions

Time limit to opt for Composition Scheme under Form CMP-02 by service providers has been extended to the 30th of September, 2019.

The due date for Form CMP-08 for the April-June 2019 Quarter by composition dealers has been extended to the 31st of August, 2019.

Revised GST Rates

The following are the GST rates that have been amended in the 36th GST Council Meeting.

ItemBefore the GST Council MeetAmended Rates
Electrical Vehicles12%5%
Electric Charges18%5%

NOTE: A full exemption in terms of GST rates is offered to local authorities who are looking to hire e-buses for public transport facilities.

Other Related Guides

Gujarat E-Way Bill Notification Gujarat E-Way Bill Notification Electronic way bill most popularly known as an e-way bill has now been introduced nation-wide for both inter-state mo...
GST on Supply of Seed Certification Tags GST on Supply of Seed Certification Tags Recently, the Central Board of Indirect Taxes and Customs issued circular no. 100/19/2019-GST dated 30th Ap...
Related Company Services under GST Related Company Services under GST Para 2 of Schedule I of the Central Goods and Service Tax Act, 2017 states that supply of goods or services or bot...
Payment Voucher Payment Voucher Under Goods and Service Tax, the different transaction involves the issuance of different vouchers/invoices. One such voucher, newly ...
Treatment of Input Tax Credit in Case of Death of ... Treatment of Input Tax Credit in Case of Death of Sole Proprietor As per the provisions of section 41 (1) of the Central Goods and Service Tax Act, 2...

Post by Chris John

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.