In a series of announcements following the 55th GST Council meeting, Finance Minister Nirmala Sitharaman outlined important decisions designed to simplify the GST process for small businesses and skill training providers.
The Finance Minister confirmed that the Council has greenlit a concept note aimed at streamlining the GST registration process for smaller firms.
Additionally, Sitharaman revealed that skilled training partners will be exempt from GST, although she noted that a notification will be issued to formalize this exemption.
Regarding the compensation cess, Sitharaman mentioned that there is no specific timeline for the Group of Ministers (GoM) to address the matter, and the Council has not yet finalized any changes related to it.
Separately, the Central Board of Indirect Taxes and Customs (CBIC) clarified that the compensation cess on SUVs will be applicable going forward, without any retrospective impact on vehicles that have already been sold.
On the subject of the Goods and Services Tax (GST) structure for electric vehicles (EVs), Finance Minister Nirmala Sitharaman indicated that new EVs will attract a 5% GST, and the Council’s goal is to encourage the adoption of electric vehicles.
In a significant clarification, Sitharaman stated that used EVs will not be subject to GST when sold between individuals.
However, used EVs purchased by companies, or those modified by sellers and then resold, will incur an 18% GST, based on the margin value between the purchase and the selling price.
Sitharaman emphasized that the decision to apply an 18% GST on used EVs was made after careful discussions within the GST Council, and was not arbitrary, despite the Centre’s initial proposal of a 5% rate.