Current context: The GST Council has slashed the GST rate on electric vehicles (EVs) to 5 %from 12%.
a. 12%
b. 5%
c. 18%
d. None of them
- The government has taken the step to give tax boost to the arm for the auto industry to promote the sale of EVs.
- This is another move to significantly alter consumer behaviour in favour of EVs, with government method to hike the registration charges on petrol/diesel vehicles.
- The slashing of GST rates on EVs is welcomed by the Society of Manufacturers of Electric Vehicles (SMEV) and will be effective from 1st August 2019.
- The GST Council has also exempted hiring of Electric Buses by local authorities from GST.
- The cut in the GST rate on electric vehicles will provide relief to customers, as higher cost of acquisition and inadequate infrastructure deterred them from looking at EVs.
- Finance minister, Nirmala Sitharaman had proposed an income tax deduction of Rs 1.5 lakhs on interest paid on loans taken for EVs in her maiden budget speech.
Question:
Q.1 The government has reduced the GST on Electric Vehicles to____?a. 12%
b. 5%
c. 18%
d. None of them
