A number of changes in the interest and tax rates have been announced recently which will take effect on August 1. In its last meeting, the GST or Goods and Services Tax Council decided to revise the tax rates applicable to electric vehicles and their chargers, among other changes. State Bank of India (SBI) has made certain changes to the charges levied by it for instant money transfer services, and revised the interest rates it offers on term deposits. These changes will also take effect on August 1.
Here’s a brief description of the changes in the rates announced recently which will come into effect on August 1:
GST Council rate cut on electric vehicles
The GST Council has decided to reduce the tax rate on electric vehicles (EVs) to 5 percent from the existing 12 percent. The new Goods and Services Tax (GST) rate on EVs will be effective from August 1. The GST rate on all EVs has also been reduced from 12 percent to 5 percent. Additionally, the tax rate on chargers or charging stations for EVs has been slashed from 18 percent to 5 percent. The council also approved GST exemption for the hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities from August 1.
Reduction in State Bank of India IMPS charges
State Bank of India or SBI has decided to do away with IMPS (Immediate Payment Service) charges for its internet banking, mobile banking and YONO (You Only Need One) customers. IMPS is an instant payment service that enables round-the-clock money transfer through the use of the mobile app, mobile banking or internet banking. For bank branches, SBI has announced a waiver on IMPS charges for fund transfer up to Rs. 1,000.
State Bank of India fixed deposit (FD) interest rates
SBI said it will reduce the interest rate on fixed deposits across all maturities with effect from August 1. The bank will now offer an interest rate of 5 percent to the general public and 5.5 percent to senior citizens on fixed deposits of 7-45 days. Previously, the public sector bank paid interest at the rate of 5.75 percent and 6.25 percent to the general public and senior citizens respectively.