The government may soon give a big relief to the auto industry sector affected by the COVID19 transition. Minister Prakash Javadekar has indicated that a ten per cent reduction in GST rates on vehicles can be done. In the annual meeting of SIAM, on Friday, the Union Minister said that the new junk policy is also ready and it will be announced soon.
In the 60th annual meeting of the Society of Indian Automobile Manufacturers (SIAM), Prakash Javadekar has said that "The GST is being discussed with Finance Minister Nirmala Sitharaman. Rates can be reduced with the phased method for a two-wheeler, three-wheeler, public transport vehicles and 4 wheelers. We hope you can hear some good news soon". He assured that the ministry will talk about the GST with the PM and Finance Minister on the demand. However, immediate reduction in this is not possible but it will take time.
The Finance Minister had said in the past that two-wheelers do not fall in the luxury category, nor do the harmful products. Hence GST rate can be reduced on these. Two-wheelers currently imposed 28 per cent GST. The central MSME minister has asked the auto sector companies to produce vehicles with flex engines to promote alternative fuels. These types of vehicles are being run in the US, Brazil and Canada, so why can't production be done in India.
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