The condition of the domestic automobile industry is not improving. In August too, there has been a 21 percent decline in sales. The government has again indicated that the GST rate may be cut, but it seems unlikely that this relief will be given in the GST Council this time to be held in Goa on 20 September.
Addressing the annual conference of the Automotive Component Manufacturers Association of India (ACMA), Minister of State for Finance Anurag Thakur said on Friday that the government has received requests from all sections of the industry to cut the GST rate, it is being considered, but the people of the auto industry should also contact the Finance Ministers of the states for this, as they are also a part of the GST Council. Received are.
Significantly, the people of the auto industry are demanding to reduce the GST of 18 percent on cars from 28% to 18 %, but many state governments do not seem to agree on this.
Minister of State for Finance Anurag Thakur said, 'Any reduction in the GST rate will have to first get the approval of the GST Fitment Committee and after that it will be put up for consideration in the next meeting of the Council. We are ready to put it in the council meeting, but most decisions are taken by consensus. I would like to say to the people of this industry that they should also talk to the Finance Ministers of different states who are members of the GST Council.
Sources say that the fitment committee is already considering a GST rate cut for the auto sector, but the council's finance ministers of several member states are against it. States will suffer a huge loss of revenue due to lower rate. So this time, if there is no consensus in the Council, then this proposal can be sent to the Fitment Committee for consideration once again.
The condition of the auto industry is very poor. The sector has seen a decline in sales for the last nearly a year. That's why people associated with this industry are lobbying vigorously to cut the GST rate. Guenter Butschek, managing director and CEO of Tata Motors, said, "To get out of the current crisis and take advantage of the festive season, we still need to know the government's clear opinion. If the government is not able to cut GST due to any reason, then tell us clearly now. Right now customers are not coming to the showroom because of this, because they feel that after September 20, a better deal can be found.
