Friday, October 7, 2022

Auto industry in India will have to find its own balance: SIAM

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New Delhi: Day after the GST Council refused to cut GST rates for the sector, Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said that the auto industry in India will have to “find its own balance” to boost demand. In an official statement released on Saturday, Wadhera said, “The auto industry was very hopeful of GST reduction. It is clear that there is no reduction of GST rate on vehicles from 28 percent to 18 percent.
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The statement comes after the GST Council, which met in Goa on Friday, did not cut tax rates on automobiles. The auto industry in India had been demanding a cut in GST rate from the current 28 percent to 18 percent in order to revive sales as it reels under a prolonged slowdown. At present, around 60 percent of auto components are taxed at 18 percent, while the rest are in the 28 percent slab.

‘Demand partially met’

“SIAM had requested for abolishing compensation cess for the whole segment of 10-13 seater vehicles, however, the benefit has been partially met,” Wadhera said. He, however, added that he hoped that the festive season would help in ushering in positive consumer sentiments.

Wadhera also said that the recent measures announced by Finance Minister Nirmala Sitharaman will support growth and once the market stabilises and revenue rises to comfortable levels, the government would be able to rationalise GST levels and reduce rates on vehicles.

The GST Council announced a slew of measures on Saturday, including slashing the tax rate on hotel room tariffs and more than doubling the tax on caffeinated beverages to 40 percent.

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