Automobile industry body Society of Indian Automobile Manufacturers (SIAM) has suggested the government to prefer a standard GST (Goods and Services Tax) rate on small cars.
The Industry body said in a statement “Standard GST rate should be applicable on small cars, MUVs (multi-utility vehicles), two wheelers, three wheelers and commercial vehicles. Cars other than small cars should attract a GST rate which is 8 per cent more than the standard rate,”
“A lower GST rate for electric vehicles, hybrid electric vehicles and other alternative fuel vehicles, which should be at least 8 per cent less than the standard rate.”
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SIAM says that it has gone through the details of draft GST law and provided feedback to the government on the basis of its study.
The automobile industry has good vibes about the GST regime. The automobile makers in India are confident about the implementation of the GST and have come forward in favor of the new indirect tax reform.
On the other hand, Finance Minister Arun Jaitley said on September 30 that the GST rates, states compensation and service tax assessments will be decided in the GST council’s next meeting scheduled on October 18-20.
The final call of the GST rollout will depend on the passage of the CGST and IGST bills in the parliament. The central government is working to implement the GST as per the proposed deadline of April 1, 2017.
