While the Coronavirus crisis has spoiled the arithmetic of the big automobile companies, it is now going to have an impact on the micro, small, and medium enterprises (MSME) industry selling parts. The auto sector has seen the biggest decline so far in the past year. Where the second phase this time due to the Coronavirus crisis, the sale has come on the floor. That is, the business is falling down due to double hitting, and manufacturers say that the GST cuts will give the sector a lifeline. Due to which the price of vehicles will fall slightly and business can catch the pace. 24-hour production companies have started work in a shift earlier, while now many companies are also falling in the speed of production in one shift. Relief is being expected from the central government.
Letter written to the Central Government to reduce GST: According to Rahul Ahuja, Chairman of Confederation of Indian Industry and Director of Rajneesh Industry, the industry has been going through a recession for some time. He has written a letter to the Central Government requesting that the GST should be reduced from 28% to 18% for some time to give rise to the auto sector from recession. By this, customers can also come forward to see the benefit of 6 months. At this time, production has fallen by 50 percent. The input cost is also increasing very much.
Government also benefits from reducing GST: According to New Swan Group MD Upkar Singh Ahuja, if the rate of GST is reduced, the government as well as the companies will also benefit. Right now we have to be 2-4 to complete our input cost. Due to high production, the stock has also accumulated and forced to reduce production by 40 percent.
Government should give assistance fund: According to CICU General Secretary Pankaj Sharma, many sectors are lagging badly at this time. In which the auto sector is in a downturn. To upgrade this sector, the government will have to give assistance fund, if GST rates are revised only, then there will be a relief and the sector can come back on track again.
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