GST Council may cut tax on hybrid vehicles as auto sector battles slowdown

The government is examining a rate reduction for such vehicles by doing away with the cess, which will bring down the tax incidence from 43% to 28%

Amid the auto industry’s clamour for a cut in the goods and services tax (GST) rate, the GST Council may give a breather to the hybrid vehicles segment in its upcoming meeting.

The government is examining a rate cut for such vehicles by doing away with the cess, which will bring down the tax incidence from 43 per cent to 28 per cent. Hybrid vehicles use both a small internal combustion engine (ICE) and an electric motor for minimising emission.

The auto sector is facing the worst slump in 20 years, with sales of passenger vehicles plummeting by 30.98 per cent in