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36th GST Council Meeting Highlights – Building up the EV Sector


The 36th GST Council Meeting was held on 27th July 2019 with the prime agenda being - reduction of GST rates applicable on Electric Vehicles. The meeting originally scheduled on 25th July 2019 had to be deferred to a later date as the Chairperson and Union Minister of Finance & Corporate Affairs, Nirmala Sitharaman, was pre-occupied with her duties in the parliament. The 36th GST council, convened over Video Conference, has recommended the follows:
  1. Reduction in the GST rate for Electric Vehicle Sector
  2. Extension to opt-in for Composition Scheme
Boosting the Electric Vehicle sector in India
In an attempt to provide a boost to the eco-friendly alternative to the automotive industry, the GST council has recommended GST rate slashes for Electric Vehicle sector, as given below:
  1. The GST rate on all electric vehicles shall be reduced from 12% to 5%.
  2. The GST rate on charger or charging stations for Electric vehicles shall be reduced from 18% to 5%.
  3. Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities shall be exempted from GST.
The Electric Vehicles Sector in India is still in a budding phase and the rate slash may provide an even ground to the same to compete against its automobile counterparts. These changes in the GST rates for EV sector shall be put into effect from 1st August 2019 onwards.

GST updates for Composition Scheme
The GST council has extended the time period for a taxpayer to opt-in for composition scheme. The last date for filing of intimation in form CMP 02 has been shifted from 31st July 2019 to 30th September 2019. However, such extension is applicable only for the service providers notified under notification No. 2/2019-Central tax (rate) dated 07.03.2019 for a special Composition Scheme.
Furthermore, the due date for paying GST in CMP-08 (for the quarter April-June 2019) for all the composition dealers has been extended from July 31, 2019 to 31 August 2019. The extension shall provide both, the taxpayer as well as the GSTN, the much needed time to prepare for form CMP 08 (which is yet to be added on the GSTN portal).
To read our coverage on the previous Council Meet decisions, you may refer here:

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About Vaishali Dedhia


Vaishali Dedhia, a Chartered Accountant, has been working with IRIS for over 7 years and is currently the lead Functional Analyst and Subject Matter Expert for IRIS' GST offerings. She has also been assisting the clients in return filing related queries. Prior to GST, she was involved in compliance and data analysis for the US markets. In her leisure time, Vaishali likes reading novels, listening music and hanging around with friends, family.

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