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SIAM calls for GST cut on passenger vehicle from 28% to 18% - GST Station

SIAM calls for GST cut on passenger vehicle from 28% to 18%

SIAM calls for GST cut on passenger vehicle from 28% to 18%

    SIAM has made a presentation to the Government on the same, said Rajan Wadhera, president of SIAM, who is also the president of automotive sector at Mahindra & Mahindra.

    MUMBAI: With the growth in passenger vehicles sales in the country declining to multi-year low, the Society of Indian Automobile Manufacturers (SIAM), an industry body, proposed the government to cut GST on cars to 18% from 28% to pare down the cost and lift consumer sentiment. 

    SIAM has made a presentation to the Government on the same, said Rajan Wadhera, president of SIAM, who is also the president of automotive sector at Mahindra & Mahindra. 

    The recent increase in upfront insurance cost coupled with the increase in the price of vehicles due to more stringent safety norms has hurt consumer sentiment. “One of the reasons that demand has come down is that the cost has gone up,” said Wadhera. 

    The automotive industry accounts for 49% of the manufacturing GDP and generates thousands of jobs every year. The industry is of the opinion that the GST cut will spur growth in the sector and that in turn may also help the government in generating higher GST collection from the sector. 

    “Last five years, every year the growth of passenger vehicles industry has come down. I am certain that it will be on the mind of the government to turn around the auto industry, it is a big contributor to our economy” said Pawan Goenka, managing director of Mahindra and Mahindra, India’s third-largest maker of passenger vehicles. 

    Beside GST-cut, a lot of small things can be done by the government, like bringing stability in regulations, Goenka said, adding that too many regulatory changes in the recent past have led to uncertainty in the industry. 

    Source- Economic Times.

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