The Society of Indian Automobile Manufacturers (SIAM) on Friday said that all vehicle makers were unanimous in their demand for immediate reduction in GST on the sector to 18% from the current 28%.
“Need for an immediate reduction in GST rates has been agreed unanimously among all members of the automobile manufacturers, including two-wheeler OEMs. This was also reiterated at a recent meeting with the Finance Minister, where all OEMs representing passenger vehicles, commercial vehicles and two wheelers had actively participated,” SIAM president Rajan Wadhera said in a statement.
The statement follows reports that Rajiv Bajaj, MD of Bajaj Auto, had called for reduction in GST on automobiles closer to the roll-out of BS-VI norms in April 2020. He had reasoned that the move would help bring down vehicle prices, which would become costlier with BS-VI.
This is in contrast to the industry demand for an ‘immediate reduction’ to kick-start sales ahead of the festive season. SIAM added that Pawan Munjal, chairman, Hero MotoCorp, had emphasised on immediate GST reduction at the meeting with the Minister. “Any other differing view on this are purely personal views,” it said.
