New Delhi: Union Minister Prakash Javdekar has indicated on Friday that the GST rates on vehicles (GST rates) may be cut. He hoped that soon there could be good news for the automotive industry. Javadekar said that the Auto Scrappage Policy is ready, all the stakeholders have provided inputs. It will be announced very soon. Talking about the possibility of GST reduction on the vehicle segment, he said that the Finance Ministry is considering this proposal. However, they do not have detailed information about this.
Javadekar said that there is likely to be a cut for two-wheeler, three-wheeler, public transport services and four-wheelers. He has expressed hope that some good news may come about this very soon.
Two-wheelers do not come in luxury segment
He said that he will definitely put the demand of the Goods and Services Tax deduction by the automotive industry in front of Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman. He said, ‘It is possible that we do not immediately agree on GST deduction, but it is not meant. Two-wheelers neither fall in the luxury segment nor within the scope of sin goods, so there is scope to cut GST rates.
28 percent GST on two-wheeler
Finance Minister Nirmala Sitharaman also said this during a conversation with Industries last month. The Finance Minister had said that the proposal to revise the rates will be considered by the GST Council. Currently, GST is to be paid at 28 per cent on two-wheelers.
Any decision on GST rates is taken by the GST Council, which is headed by the Finance Minister. Finance and taxation ministers of all states and union territories also attend the GST Council meeting.
The automotive industry is important for the economy
Javadekar said that the government is working closely with all the stakeholders so that the demand can get a boost. Addressing the 60th annual convention of Siam, Prakash Javadekar said that the auto industry is extremely important for the Indian economy. We are trying to support this industry through incentives and competition. Special attention is also being given to exports.
