Amidst the COVID19 Pandemic Indian Auto Sector was going through its worst phase.In an attempt to revive the sector, Government has given a positive response regarding the demands of SIAM including the reduction of 10% GST on vehicles
- SIAM demanded the reduction of GST on Vehicles by 28% to 18%.
- Union Minister, Hon’bl Prakash Javadekar assured the Auto sector of support from the government, for the sector’s revival
- Government is also thinking of giving a nod to new incentive based Vehicle Scrappage Policy.
Society of Indian Automobile Manufacturers (SIAM); which is a not-for-profit Apex National Body, representing all major vehicle and vehicular engine manufacturers in India.It organized its 60th Annual Convention on 4th Sept 2020. At the convention, Shri Prakash Javadekar, Hon’ble Union Minister assured the automobile industry of support from the Government in reviving demand, mainly regarding GST on vehicles.
Some of the key points put forward during the meeting by representatives of Automotive Industry include;
- Lowering of GST rates from 28 to 18% across all vehicle categories and automotive components.
- An incentive based ‘Vehicle Scrappage Policy’.
This demand of lowering of GST rates from 28 to 18% by Automobile Sector rises after coronavirus pandemic has severely hit the sales of the automobile industry, when it was already going through low demands.
While acknowledging the auto industry’s recommendation for reduction in GST rates, he further added that “GST reduction will ultimately benefit the Government and I will be taking it up with the Finance Minister and Prime Minister’s office. He also assured that a well-entrenched vehicle scrappage policy will come soon that will bode well for the automobile industry.
If this proposal get finalized, this may become the biggest reviving factor for Automobile Sector and surely do benefit customers.
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