The Society of Indian Automobile Manufacturers (SIAM) has welcomed the new GST Rates on automobiles. Speaking about the newly implemented tax, Vinod Dasari, President, SIAM said that the rates are as per the expectations of the industry and almost all segments of the industry have benefitted by way of a reduced overall tax burden in varying degree.
He further added that this will pave the way for stimulating demand and strengthening the automotive market in the country, paving the way 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.
Differential GST for electric vehicles will also help electric mobility to gain momentum in India. Government has encouraged environmentally friendly technologies and with the current focus on reducing emissions of greenhouse gases and reducing carbon footprint 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 mainly for public transport in the same tax bracket as luxury cars with a 15% Cess is also unexpected and may merit a review.