- On September 27, 2019
- autoindustry, automobile, GST
Following the slowdown in the automobile sector, president of Society of Indian Automobile Manufacturers (SIAM) said that the auto industry will have to “find its own balance” to boost demands. The auto industry was very hopeful of GST reduction but the GST Council is clearly declining to cut rates for the auto sector.
The industry had been demanding a GST rate cut from the current 28 percent to 18 percent in order to revive sales which have been facing a prolonged slowdown. The auto components industry demanded a uniform GST of 18 percent also. At present, 60% of auto components are taxed at 18 %, while the rest are in the 28 % slab. “The festive season would help in ushering in positive consumer sentiments,” said, president Rajan Wadhera of SIAM. They also requested abolition of compensation cess for the whole segment of 10-13 seaters vehicles, however, the benefit has been partially met.
Wadhera said the reduction of GST compensation cess for the sub-segment of 10-13 seaters with length less than 4 metres is a positive step as the industry had been demanding it for a long time. He expressed hope that the recent measures taken by the finance minister will support growth and once the market stabilizes and revenue rises to comfortable levels, the government would be able to rationalize GST levels and reduce rates on vehicles.