Revving Up India: GST Rationalisation Ignites Auto Industry
The GST Council's groundbreaking decision to streamline tax rates has been hailed by India's auto industry as a transformative reform. Industry leaders commend the move for enhancing affordability, stimulating demand, and fostering the country's shift towards sustainable mobility, with benefits spanning automobiles, agriculture, and other key sectors.
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- India
The recent GST Council decision to rationalise tax rates has sparked widespread approval in the auto industry, which sees it as a pivotal reform. Industry experts believe this move will significantly enhance affordability, drive consumer demand, and bolster India's efforts toward sustainable mobility.
Anish Shah, Group CEO & MD of Mahindra Group, praised the reform as a monumental step in India's tax evolution. The streamlined two-rate system prioritizes essential commodities, affirming the government's commitment to easing living conditions and business operations across India. This shift is anticipated to provide immediate relief while strengthening vital sectors including agriculture, healthcare, and MSMEs.
The Society of Indian Automobile Manufacturers (SIAM) and the Federation of Automobile Dealers Associations (FADA) both lauded the reduction of GST on vehicles, now set at 18% and 40%, from previous rates ranging up to 50%. This change is expected to benefit first-time buyers and promote growth in the automotive sector, with continued support for electric vehicles maintained under the existing GST policy.
(With inputs from agencies.)
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