36th GST Council Meeting Agenda

36th GST Council Meeting Key Highlights

36th GST council meeting will take place on 25th July 2019 via video conferencing.

The main purpose behind this 36th GST Council Meeting is to decide GST rate cut on EV (Electronic Vehicles). Currently, on electronic vehicles the 12% GST rate is applicable.

In the previous 35th GST Council Meeting, GST rate cuts on electronic vehicles were referred to the fitment committee to check whether the rate cuts are feasible or not.

Further, this year’s Union Budget also promoted the use of electric vehicles by announcing direct tax benefits to the citizen of India.

36th GST Council Meeting Expectations

1. GST Rate cuts on Electronic

Keeping AQI (Air Quality Index) of India into consideration the fitment committee may represent their feasibility report of rate cuts on EV. This may not only include the rate cuts on purchase on electronic vehicles but also on hiring EVs. It shall be noted that currently GST rate applicable on purchase of EV is 12% and the GST Rate on hiring EVs is 18%.

The decrease in the tax rate on the electronic vehicle will surely increase the demand for electronic vehicles in the prevailing auto-industry.

2. Differential Tax on Lotteries

Another major concern that may be discussed in this 36th GST Council meeting can be the differential tax treatment of lotteries between state-authorized lottery scheme and state-owned lottery scheme. In 35th GST Council meeting the council asked for help of the Attorney General to ascertain the uniform GST rate structure on the same matter.

This issue was raised in the 35th GST Council Meeting as there was a disparity between the state-authorized lottery scheme where the GST rate is 28% and state-owned lottery scheme on which GST rate is 12%. This differential tax treatment of lotteries contradicts Article 304 of the Constitution of India.

We also expect rate cuts on solar power rate cuts. However, as this GST Council Meet will be held through video conferencing we do not expect other major decision in this 36th GST Council Meeting.