Auto Industry Seeks Two Rates Under GST For Passenger Vehicles

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    The auto-industry body Society of Indian Automobile Manufacturers (SIAM) is seeking two rates under the GST regime as against multiple rates being levied currently on passenger vehicles.

    For the upcoming Union Budget 2018-19, the industry body said, "The automotive industry has been suggesting two rates for cars in place of multiple tax rates, and requests the government to keep only two rates for vehicles under the GST regime".

    Additionally, a special rate of 12% is being sought for hydrogen fuel cell powered and electric vehicles.

    In the current scenario, under the GST in addition to the 28% tax rate, a cess of 1% is charged on small petrol run cars with an engine capacity of less than 1200 cc while for diesel cars with engine capacity less than 1500 cc, 3% cess is levied. For vehicles carrying not over 13 passengers as well as hybrid cars, the cess @ 15% is charged.

    For used cars, the industry suggests the government to fix GST at 5% on the difference between the sale and purchase price of the car. In respect of the electric vehicle segment, the industry body urges for custom duty concessions for other important components.
    The exemption of compensation cess on ambulances with a seating capacity for 10 to 13 is also suggested by the auto industry.

    With Input From PTI

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