SME Times News Bureau | 20 May, 2017
Auto manufacturers body Society of Indian Automobile Manufacturers (SIAM) on Friday welcomed the new GST (Goods and Services Tax) rates on automobiles.
"The rates are as per the expectations of the industry and almost all segments of the industry have benefited by way of a reduced overall tax burden in varying degree," said SIAM President Vinod Dasari.
"This will pave the way for stimulating demand and strengthening the automotive market in the country, paving the way for meeting the vision laid down in the Automotive Mission Plan 2016-26."
According to Dasari, the differential GST for electric vehicles will help the segment to gain momentum in India.
"Government has always encouraged environmentally friendly technologies and with the current focus on reducing emissions of greenhouse gases and reducing carbon footprint one would have expected the lower taxation to continue on such vehicles in a technology agnostic manner," Dasari said.
However, SIAM called for a review on the inclusion of 10-13 seat capacity vehicles "used mainly for public transport" in the same tax bracket as luxury cars with a 15 percent cess duty.
The base rates were fixed by the GST Council at its 14th meeting held in Srinagar from May 18-19. The base GST rates for the automobile sector have been set at 28 percent.
