Unlimited Tax Return Filing


Parliamentary Panel Proposed a Cut in GST Rates for Automobile Sector

Parliamentary Suggests Lower GST Rate for Auto Sector

On Tuesday, 3rd March 2020, a parliamentary panel proposed a reduction in GST rates for the Automobile Sector of the country. It recommended that the GST rates imposed should be reduced at least until the Automobile Sector revives in full. It also said that uniform road taxes What is One Nation One Road Tax? One Nation One Road Tax is a proposal from GST council to make one road tax across the country just like the Goods and services should be implied throughout all the states and union territories of the country. The panel said that this will work to fight against the negative growth in the total production of automobiles since July 2018.

Department of Heavy Industry (DHI)’s Demands for Grants 2020-21 was deeply studied by the panel and then it came up with the solutions in its report submitted to the Parliament. The Automobile Industry constitutes 27 percent Industrial Growth Domestic Product (GDP) The biggest tax reform i.e. Goods and Services Tax is now a part of Indian Economy. A new and unified tax structure is followed for indirect taxation and 49 percent of manufacturing GDP. It is one of the fastest-growing sectors in the country, providing 3.7 crore direct and indirect jobs to the unemployed. The total GST collections from the Automobile Sector amounts to a total of INR 1,50,000 crores, which is 15 percent of the total GDP collections of the country.

“But, the committee observes that of late, there is negative growth in the automobile production since July 2018,” said the panel’s report.

The panel stated that factors like strict rules for loan sanctions by banks, ineffective credit facility to customers, launching of BS-VI, rise in price due to 5 yr insurance rule, high GST rates As per the recent update, The central government is planning to do changes in the slabs of Goods and Service Taxes (GSTs) soon. As per the rumors, etc resulted in the downfall of growth rate in the automobile sector.

Among other suggestions, the panel also asked to hold the policy of “Upfront Payment of Insurance for 5 Years” for the time being. The panel suggested introducing an incentive-based scrappage policy for increasing the demands of New Vehicles. Additionally, it asked the parliament to reduce the import-duty on Lithium-ion Batteries used in e-vehicles.

The panel was pleased to inform you that the Delhi-Chandigarh Highway is declared as the First E-Vehicle Friendly Highway. It said that other important and busy highways like Delhi-Jaipur Highway, Mumbai-Pune Highway, etc. should also be made e-vehicle compatible with frequent charging places.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Devesh Sharma (Ex-employee)
Devesh, an internet enthusiast, likes to surf different websites to gather reliable and accurate data and is very passionate about writing, Currently placed as a Content Writer at SAG Infotech is into writing about different tax-related contents and is willing to go beyond the perimeters to write more precisely, his articles offer great details to the facts and the products. View more posts
SAGINFOTECH PRODUCTS

Leave a comment

Your email address will not be published. Required fields are marked *

Follow Us on Google News

Google News

Latest Posts

New Offer for Tax Experts

Huge Discount on Tax Software

Upto 20% Off
Tax, ROC/MCA, XBRL, Payroll, Online GST

Limited Offer, Hurry

Best Offer for Tax Professionals

Upto 20% Discount on Tax Software

    Select Product*

    Current GST Due Dates