SIAM which stands for Society of Indian Automobile Manufacturers is a significant Industry body for automobiles and engine manufacturers in the country. SIAM wants two tax rates for passenger vehicles under Goods and Services Tax regime in the upcoming budget rather than applicable various rates on vehicles. The Automobile Industry body demanded from the FM, Arun Jaitley a special GST tax rate of 12% on hydrogen and electric fuel cell equipped automobiles. Presently, small cars with engine capacity lower than 1200cc levies 1% cess, whereas diesel cars with engine capacity lower than 1500cc levies 3% cess, an engine with capacity above 1500 cc, attracts 28% applicable tax rate.
SIAM said in the recommendations for the Union Budget 2018-19, “The automotive industry has been suggesting two rates for cars in place of multiple tax rates, and requests the government to keep only two rates for vehicles under the GST regime.”
Likewise, applicable cess on hybrid cars, comprising SUV, mid and large-sized cars, remains firm at 15%. On the other hand, transport vehicles which carry more than 13 passengers also attract 15% GST as well.
The automobile industry body also requested the government for GST tax on used cars to be put at 5% on the varying value of sale and purchase price of those vehicles.
Accordingly, coming to the electrical vehicle vertical, the apex body has demanded an extension of custom duty concessions for surplus important components.
In addition, it has demanded negation of any custom duty concessions for CBUs (completely built units) in electric vehicles segment to help ‘Make in India‘ programme.
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The apex body also asked the government to distinctly render the meaning of CKD (completely knocked down)/ SKD (semi-knocked-down) units under the segment of electric vehicles.
The automobile industry body also recommended the FM to exempt the ambulances which have 10-13 seater arrangement from compensation cess.
