GST rate cut on Electric Vehicles from 12 percent to 5 percent 30/07/2019 – Posted in: Daily News – Tags: ,

GST RATE CUT ON ELECTRIC VEHICLES

 

For: Preliminary & Mains

Topics covered: GST rate changes, Electric vehicles, Significance, Challenges


 

News Flash

The Central government announced GST rate reduction for electric vehicles, chargers and charging stations.

  • The changes shall come into effect from August 1, 2019.

 

Highlights

  • The 36th GST Council Meeting recommended a reduction of GST rate on all-electric vehicles from 12 percent to 5 percent.
  • The GST rate on the charger/ charging stations for Electric vehicles is reduced from 18 percent to 5 percent.
  • The hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities will be exempted from GST.

 

Significance

  • Accelerate the adoption of electric vehicles.
  • Reducing air pollution in the country.
  • Reduce/ Do not produce greenhouse gas emissions.
  • Reduce dependency on a fossil-fuel based economy.
  • Electric vehicles may contribute to a reduction in noise pollution levels in cities.
  • Energy efficiency and emission reduction have improved in automobiles.

 

Challenges faced

  • Charging infrastructure
  • Cost
  • Lack of renewable energy and grid infrastructure

 

National Electric Mobility Mission Plan 2020

  • India unveiled the NEMMP 2020 in 2013 to address the issues of National energy security, vehicular pollution and growth of domestic manufacturing capabilities.
  • The Government has plans to make a major shift to electric vehicles by 2030, committed under Paris Agreement.

 

Way Ahead

  • ISRO has tested a solar-powered hybrid car- a modified Maruti Omni with a solar panel platform installed on top of the car.
  • The installation of this solar platform on the car has been rated “awful” for its design.

 

Source: The Hindu Businessline

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