A senior officer from Ashok Leyland recently said that Reduction in rate of GST and introducing of scrappage policy can revive the commercial vehicle sector which has been going through a tough time for quite some time now.
The Hinduja Group flagship company also expects something similar, amid the current slowdown in the industry which gets worsen due to the COVID-19 pandemic, to improve the condition gradually during the ongoing financial year.
In response of if the GST rate cut on commercial vehicles would help in reviving the sector Ashok Leyland MD and CEO Vipin Sondhi told that “The answer is yes, it certainly will,”. He further added that “When you look at the commercial vehicle industry, it’s core to the country, it is pretty much the core industry…to have it at 28 percent (GST rate) 
Grab the information of revised GST slab rates on consumer products in India, Although the GST council finalized the slab rates like 5%, 12%, 18% and 28%. Read more is something which the industry has put forth to the government in the past and now as well. Will it help? It will help, it could be one of the possible demand triggers,”.
Sondhi also added that “The other trigger points could be the introduction of a scrappage policy and more investment in rural India”.
In the response of queries related to the sales outlook for the commercial vehicle industry in the current financial year, Sondhi said, “Fundamentally what we are seeing is that each segment of the commercial vehicle industry will have its own trajectory.”
However, he further clarified that the situation will depend on various factors such as the impact of reforms initiated by the government, availability of liquidity at the right time, and some other factors.
“I think every quarter will be better than the previous one and we will have to be ready,” he added.
Meanwhile, as per recent updates in the same matter, the auto industry body, SIAM has been requesting the central government for a rate cut in GST on vehicles 
SAG Infotech pointed out the impact of GST on Indian car sector and its spare parts. GST boosted the sales but damaged the spare parts sector due to high tax. Read more and bring it to 18% from 28%, and also to introduce an incentive-based scrappage policy.
The Central government also indicated that it is working on a scrappage policy 
The changes in the proposed scrappage policy will impact the number of commercial vehicles under the policy and further control new CV demand as well, as per ICRA. Read more, but there are no updates or indications so far about lowering the GST rates on automobiles.
