Speaking at the ongoing ACMA Convention, Ram Venkataramani – President, ACMA & Director, Amalgamations Component Group, today requested the GST council for standardised rate for all components. Currently, high-value parts and components, like transmission, engine, exhaust manifolds attract a higher GST rate of 28 per cent, while other components like brakes, muffler, and wheels have the lower 18 per cent GST rate. And the Indian component industry requested the council to keep a uniform GST rate of 18 per cent for all its products.
The auto industry to has also been requesting the government to cut the Goods & Service Tax (GST) rates on automobiles, to help it come out of the massive sales slowdown it’s currently facing. Speaking at the annual convention, Anurag Thakur, Minister of State for Finance & Corporate Affairs said that the next GST council meeting will take place on September 20, 2019, and the decision to bring down GST rates on automobiles from 28 per cent to 18 per cent will be taken then.
However, Thakur also mentioned that “the reason for Slowdown is more dependence on public transport and people trying to save the environment. This is why people are not buying enough vehicles.” When asked whether the GST Council will also consider revising rates on auto components, Thakur told carandbike, “The GST Council will discuss unanimously about the entire Auto Sector.”
Deepak Jain, Vice-President, ACMA and Chairman & Managing Director, Lumax Industries said, “Government is looking at the auto sector holistically and we are hopeful that GST revisions will be considered on both automobiles and auto Components”