GST Rates For Vehicles Likely To Be Simplified; Trump Fixes Zelenskyy-Putin Talks; Key RSS Economic Meet Coming Up; And More

Kick-start your morning with Swarajya’s Morning Brief – your news fix, curated for clarity and insight.

GST Restructure to Simplify Auto Taxation, End Classification Disputes: Report

The government is preparing to restructure GST on automobiles as part of its broader GST rationalisation efforts, as per a report in national daily based on inputs from its sources. The aim of the government in this effort is resolving ongoing classification disputes and making vehicles more affordable for consumers.

Under the proposed changes, claims the report, automobiles will be moved from the current multi-tier structure to a simplified system that eliminates disputes over engine capacity and vehicle size classifications that have plagued the industry.

Presently, automobiles face GST at the highest rate of 28 per cent, with an additional compensation cess ranging from 1 to 22 percent depending on vehicle type. This creates total tax incidence ranging from 29 percent for small petrol cars to 50 percent for SUVs, while electric vehicles enjoy a preferential 5 per cent rate.

Under the Centre's proposal to transition GST to a simplified two-tier structure of 5 and 18 percent rates, with a 40 percent slab reserved for select items, automobiles will be placed in an appropriate bracket to end classification controversies.

The Centre's comprehensive proposal, which includes eliminating the current 12 and 28 per cent slabs, will be discussed by the Group of Ministers on GST rate rationalisation on August 21. The GST Council, comprising central and state finance ministers, is expected to meet next month to approve the final rate structure.

Currently, GST operates on a four-slab structure of 5, 12, 18, and 28 per cent, with essential items taxed at nil or 5 percent rates and luxury goods at 28 percent.

Under the proposed system, the 40 per cent rate would apply to only 5-7 select goods, significantly simplifying the overall tax architecture.

Trump Announces Putin-Zelenskyy Meeting Arrangements Following White House Summit

Marking a potential breakthrough in efforts to end the Russia-Ukraine conflict, U.S. President Donald Trump announced he has contacted Russian President Vladimir Putin to begin arranging a direct meeting with Ukrainian President Volodymyr Zelenskyy.

Following Monday's White House Summit with European leaders, Trump revealed his call with Putin and outlined plans for a bilateral meeting between the Russian and Ukrainian leaders, to be followed by trilateral talks including himself.

"At the conclusion of the meetings, I called President Putin, and began the arrangements for a meeting, at a location to be determined, between President Putin and President Zelenskyy. After that meeting takes place, we will have a Trilat, which would be the two Presidents, plus myself," Trump posted on Truth Social.

Some media outlets reported that Trump wants the Putin-Zelenskyy meeting by the end of August.

According to German Chancellor Friedrich Merz, who attended the White House summit, the Putin-Zelenskyy meeting could occur within two weeks.

Trump's announcement came after a White House Summit with key European leaders, including European Commission President Ursula von der Leyen, UK Prime Minister Keir Starmer, French President Emmanuel Macron, German Chancellor Merz, Italian Prime Minister Giorgia Meloni, and NATO Secretary-General Mark Rutte.

"Again, this was a very good, early step for a War that has been going on for almost four years. Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff, are coordinating with Russia and Ukraine," Trump wrote.

Putin's aide Ushakov confirmed the call between Trump and Putin, stating that Trump briefed the Russian leader on his White House discussions. According to Ushakov, both leaders endorsed direct Russia-Ukraine negotiations.

This follows Trump and Putin's August 15 Alaska meeting, where they held over three hours of discussions about the Ukraine conflict.

Other developments

Jaishankar Emphasizes Border Peace With China's Wang Yi

External Affairs Minister S Jaishankar stressed the critical importance of border peace with China, declaring that "differences must not become disputes" during talks with Chinese Foreign Minister Wang Yi, who arrived in New Delhi Monday for a significant three-day diplomatic visit.

Welcoming Wang's delegation, Jaishankar noted this marks the first visit by a Chinese minister since the leaders of both nations met in Kazan in October 2024, providing an opportunity to review bilateral ties and exchange views on global issues.

Acknowledging that India and China have experienced a "difficult period," Jaishankar outlined the path forward based on established diplomatic principles.

"Having seen a difficult period in our relationship, our two nations now seek to move ahead. This requires a candid and constructive approach from both sides. In that endeavour, we must be guided by the three mutuals — mutual respect, mutual sensitivity and mutual interest. Differences must not become disputes nor competition, conflict," Jaishankar stated.

The minister emphasized that Wang's scheduled discussions with National Security Advisor Ajit Doval on Tuesday regarding border issues are "very important because the basis for any positive momentum in our ties is the ability to jointly maintain peace and tranquillity in the border areas."

Wang Yi responded with optimism about bilateral relations, expressing "shared confidence to dispel interference, expand cooperation and to further consolidate the momentum of improvement development of China-India relations."

RSS to Hold Economic Review Meeting Amid India-U.S. Tariff Dispute

The Rashtriya Swayamsevak Sangh (RSS) will hold a key meeting in New Delhi from Tuesday to deliberate on challenges and opportunities facing India’s economy. This meeting becomes significant in the wake of tariffs imposed on India by U.S. President Donald Trump.

According to source-based report in national daily, RSS chief Mohan Bhagwat, senior functionaries of the organisation, and representatives from affiliated bodies including the Bharatiya Mazdoor Sangh (BMS), Bharatiya Kisan Sangh (BKU), Swadeshi Jagran Manch, and Laghu Udyog Bharati will participate. The Confederation of All India Traders (CAIT) has also been invited.

Although the meeting had been scheduled four months earlier, the context of US tariffs has made the discussions particularly significant.

A senior RSS functionary noted that such economic reviews are usually held once every 18–24 months to discuss issues relating to agriculture, markets, industry, and allied sectors. Given the current situation, the US tariffs are also expected to figure prominently in the talks.

Delhi: 'Dog Lovers' Clash With Civic Officials, Vandalise Municipal Vehicle

Tension erupted in Rohini, Delhi, after 'dog lovers' allegedly attacked a municipal team that had come to capture a stray dog. The incident occurred at Sarvodaya Kanya School in Sector-16, where the dog had reportedly bitten four to five students over the past few days.

On Monday, when the municipal van arrived to capture the dog, a group of 'dog lovers' surrounded it, forcibly freed the animal, and allegedly vandalised the vehicle. They broke its glass, deflated tyres, and took away the keys and documents.

According to officials, the stray had earlier bitten students from Classes 10 and 12, some of whom required treatment at Ambedkar Hospital. The municipal team, after securing the dog, proceeded to another complaint site in Sector-3, where a pet dog had bitten a senior citizen. There too, animal lovers intervened, preventing action and demanding the release of both dogs.

Videos circulating online show protesters abusing officials, vandalising the van, and even threatening to set it on fire.

The municipal veterinary officer has lodged a police complaint against 20–25 people for obstructing government work, damaging property, and misbehaving with staff.

Police confirmed they have received the complaint and begun an investigation.

You’re all caught up. Until next time.