GST on electric vehicles may be cut to 5%, says report

The GST imposed on electric vehicles may be reduced to 5 percent from existing 12 percent to provide stimulus to the sector, reported The Economic Times.

The GST Council is all set to discuss the matter in its upcoming meeting on Thursday, the report said citing an unnamed senior government official.

Earlier, the report added, Punjab had written to the Centre seeking a review of tax rates. The report said that the state had sought new rates for automobiles, textiles, micro, small and medium enterprises (MSMEs) and real estate to provide a boost to the economy that has witnessed a slowdown recently.