The Society of Indian Automobile Manufacturers (SIAM), the apex body of the Indian automotive industry, has welcomed the new GST rates on automobiles.
“The rates are as per the expectations of the industry and almost all segments of the industry have benefited by way of a reduced overall tax burden in varying degree.” said Vinod Dasari, President, SIAM.
Vinod Dasari said this will pave the way for stimulating demand and strengthening the automotive market in the country, prompting the industry for meeting the vision laid down in the Automotive Mission Plan 2016-26.
The Government has done well to ensure stability in taxation while at the same time moderating the taxes wherever they were too high, he added.
Differential GST for electric vehicles will also support electric mobility to gain momentum in India. “We would have liked to see a similar differential duty on hybrid vehicles to continue.” he noted.
He said the Indian government has always encouraged eco-friendly technologies and with the current focus on reducing emissions of greenhouse gases one would have expected the lower taxation to continue on such vehicles in a technology agnostic manner.
The inclusion of 10-13 seater vehicles used primarily for public transport in the same tax bracket as luxury cars with a 15 percent Cess is also unexpected and may merit a review, he added.