The demand for the GST reduction on electric vehicles, has been voiced time and again. Not that the government gave a deaf ear to the demand, but it certainly look into the possibilities of doing the needful. And now the GST on electric vehicles is the news.
And this, for sure, sounds a good news in a country where the electric vehicle market is projected to reach 27 million units by 2030 from an estimated 3 million units in 2019. This is the new environmental trend on road which is promoting the electric vehicles across the globe.
The governments taking interest in the promotion are encouraging the investments in this direction. And there is also an increase seen in the adoption of electric vehicles globally which is creating opportunities for OEMs to expand their revenue stream and geographical presence. Though the Indian market is not completely ready with a well-developed infrastructure for electric vehicles like European markets, still the things are getting better here at multi-levels which is expected to witness a steady growth.
Modi Government is pro-people government which is seen in its each and every tactical decision in the last five years. Representing the government, Mr Anurag Thakur announced that the GST Council will consider reducing tax on electric vehicles, which are seen as more environment-friendly, and the matter is pending before it. The Minister was replying to a question asked by BJP member Varun Gandhi during the Question Hour in the parliament lately.
The honest sincerity could be heard from the statement made by Mr Thakur when he uttered - “The matter has been placed before the GST Council and will be considered. As of now, it is pending before the council,” he said.
The Minister of State said the number of tax filers has doubly grown under the Goods & Service Tax denoting people’s increasing trust in the new tax regime has increased. He said the council has taken several decisions concerning GST from the beginning bringing many indirect taxes levied by states and the Centre within one sphere, was rolled out in 2017 to simplify the exercise and also to benefit traders which also includes MSME sector.
The minister delightfully announced that the new tax regime has become better with time after initial glitches and has stabilised now which is evident from more than 21 lakh returns filed in a single day in June, 2019. This is not it, the tax collection in April-May 2019 also had jumped by over 8.5 per cent compared to the corresponding period last year.
Presenting the data concerning the GST, Mr Thakur revealed the GST collection in 2018-19 was Rs 5,81,563 against Rs 4,42,561 crore in 2017-18, adding the total non-GST indirect tax collection was Rs 3,55,906 crore in the last fiscal if we compare it with Rs 4,69,092 crore in the previous year.
However, the initial high costs and lack of standardization of charging stations could hamper the growth of global electric vehicle market which is hopefully within the site and plans of the government for a smooth track on road with electric vehicles in India.