Auto industry has to find its own balance to enhance demand: SIAM

The auto industry had been demanding a GST rate cut from the current 28 per cent to 18 per cent in order to revive sales which have been facing a prol
...
The GST Council, which met in Goa on Friday, did not cut tax rates on automobiles
The GST Council, which met in Goa on Friday, did not cut tax rates on automobiles

Industry body SIAM on Saturday said the auto industry would have to "find its own balance" to boost demand, with the GST Council declining to cut rates for the sector.

"The auto industry was very hopeful of GST reduction. It is clear that there is no reduction of GST rate on vehicles from 28 per cent to 18 per cent," Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said in a statement.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
View Details
Porsche 911 Gt3 (HT Auto photo)
Engine Icon3996.0 cc FuelType IconPetrol
₹ 2.50 Cr
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
View Details
Lexus Nx (HT Auto photo)
Engine Icon2494.0 cc FuelType IconMultiple
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Rolls-royce New Ghost (HT Auto photo)
UPCOMING
Engine Icon6750 cc FuelType IconPetrol
₹ 6.95 - 7.95 Cr
View Details
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
Engine Icon2999.0 cc FuelType IconPetrol
₹ 1.30 Cr
Compare

The industry has to find its own balance to enhance demand, he added.

The GST Council, which met in Goa on Friday, did not cut tax rates on automobiles. The industry had been demanding a GST rate cut from the current 28 per cent to 18 per cent in order to revive sales which have been facing a prolonged slowdown.

The auto components industry too had demanded a uniform GST of 18 per cent. At present, 60 per cent of auto components are taxed at 18 per cent, while the rest are in the 28 per cent slab.

Wadhera expressed hope that the festive season would help in ushering in positive consumer sentiments.

He said the reduction of GST compensation cess for the sub-segment of 10-13 seaters with length less than 4 metres is positive step as the industry had been demanding it for a long time.

"SIAM had requested for abolishing compensation cess for the whole segment of 10-13 seaters vehicles, however, the benefit has been partially met," Wadhera said.

He also expressed hope that the recent measures taken by the finance minister will support growth and once the market stabilises and revenue rises to comfortable levels, the government would be able to rationalise GST levels and reduce rates on vehicles.

The all-powerful GST Council on Friday announced a slew of measures, including slashing the tax rate on hotel room tariffs and more than doubling the tax on caffeinated beverages to 40 per cent.

(The story has been published from a wire feed without any modifications to the text)

First Published Date: 21 Sep 2019, 15:26 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.