Page 9 - Banking Finance August 2019

GST UPDATE

GST

NEWS
NEWS
NEWS
NEWS
NEWS

GST employee nabbed GST reduction on electrical vehicles, chargers
for accepting bribe The GST Council has decided to cut GST rate on electrical vehicles from 12% to
5% and on EV chargers from 18% to 5%, with effect from August 1. An exemp-
A Superintendent at the Goods and
tion from GST on the hiring of electric buses by local authorities has also been
Services Tax
approved by the Council. While welcoming the reduction of GST on electric
Division in vehicles, the Society of Manufacturers of Electric Vehicles (SMEV) said it is in
Khanna line with the government’s steps to promote eco-friendly mobility.
(Punjab) has
been booked SMEV Director General Sohinder Gill said that the gap between prices of EVs
by the Central Bureau of Investiga- and internal combustion engine vehicles will also be reduced with the reduction
tion (CBI) for demanding and accept- in GST. “The government is lately showing very clear intentions of promoting
ing a bribe of Rs 50,000 from a com- EVs and GST reduction is one such measure in line with the series of actions
plainant. In a statement, CBI stated taken by the government in the last few months,” Gill said in a statement. The
that a case under Section 7 of Pre- government has also been urging states to promote eco-friendly vehicles in an
vention of Corruption (Amendment) effort to curb rampant pollution afflicting most of the major cities.
Act, 2018 was registered against the
Superintendent. 18% GST on flat owners on entire maintenance charge
“The complainant alleged that he is A notification has been issued by Tamil Nadu Authority for Advance Ruling (AAR)
running a firm of iron trading at had recently issued on the lack of clarity about the amount
Mandi Gobindgarh on behalf of his on which GST applicable on maintenance charges. It has
maternal uncle and on July 29, 2019 been held that GST of 18% is applicable on the entire
the accused had detained their truck amount and not on the difference amount in case the
containing iron scrap material at amount collected by a registered housing society or a resi-
Khanna. It was further alleged that dent welfare association (RWA) exceeds Rs 7,500 per month per flat.
later on, a bribe of Rs 1 lakh was
demanded by the accused for releas- However, exemption of GST is applicable if the annual aggregate turnover of
ing his truck and on the request of the resident welfare association is not more than Rs 20 lakh. It was further clari-
the complainant, the accused re- fied that a person who owns two or more residential apartments in a housing
duced the amount to Rs 50,000. CBI society or a residential complex will be construed as a member of the RWA for
laid a trap and caught the Superin- each residential apartment separately. That is, the ceiling of Rs 7500 per month
tendent, GST Division, Khanna red per member will be applied separately for each residential apartment.
handed while demanding and ac- RWAs are entitled to take Input Tax Credit of GST paid by them on input goods
cepting a bribe of Rs 50,000 from the and services such as generators, water pumps, lawn furniture, taps, pipes, other
complainant,” the CBI said. sanitary/hardware fittings and repair and maintenance services.

BANKING FINANCE | AUGUST | 2019 | 9