Skip to main content

Auto industry to FM: Bring down GST, raise depreciation rate

Third in the series of meetings to rev up economy

Representatives of the automobile industry, who met Finance Minister Nirmala Sitharaman on Wednesday, have sought a lower Goods & Services Tax (GST) and a higher depreciation rate to tide over the current crisis. They also impressed on Sitharaman the need for a host of others measures to help the sector ride out the rut.
The Finance Minister has been meeting representatives of various sectors to understand the issues concerning them even as several key agencies have lowered growth projection for India.
Wednesday’s meeting, the third in the series, was attended by RC Bhargawa, Chairman, Maruti Suzuki; Pawan Munjal, CMD, Hero Motors; Nirmal Mind, CMD, Uno Minda; Gurpratap Bopara, MD, Skoda India; besides the Presidents of three industry bodies — SIAM, ACMA and FADA.
According to sources, the government is expected to come out with a detailed action plan for boosting the economy.
The auto industry has been on the slow lane for the last one year.
The sale of passenger vehicles declined by 18.42 per cent in April-June 2019 over the same period last year. Within the passenger vehicles category, sale of passenger cars, utility vehicle and vans declined 23.32 per cent, 4.53 per cent and 25.66 per cent, respectively, in April-June 2019 over the same period last year.

2 lakh workers laid off

According to the Federation of Automobile Dealers Associations (FADA), around two lakh people have been laid off across automobile dealerships in the country in the last three months.
Auto companies, which feel that the GST rate of 28 per cent plus cess is hurting sales, have been demanding a reduction, at least temporarily.
However, according to a Finance Ministry official, the problem is that collection from the GST is already below expectations and any reduction now will further complicate matters.
Auto companies also want the depreciation rate raised from the present 15 per cent. A higher depreciation rate will have three consequences: First, the resale value will come down faster, which, in turn, will prompt the customer to replace the car sooner.
Second, a higher depreciation rate will bring down the insurance premium from the second year. And finally, higher depreciation will allow businesses to claim higher business expenses and thus lead to more tax benefits.

Comments

Post a Comment

Popular posts from this blog

Government is considering GST Relief package to reduce Covid Impact

For More related articles and updates, connect with us -  LinkedIn- https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 India is considering a goods and services tax (GST) relief package to counter the impact of Covid-19 and help prop up the economy, said people with knowledge of the matter. The package being considered could include a six-month suspension of GST payments for the worst-hit sectors such as restaurants, aviation and hospitality as well as a lower rate for the real estate sector. Other proposals include a switch to a cash-based principle of levying tax from the current invoice-based system and providing GST relief on sales for which payment is not received due to the lockdown by treating those as bad debts. These measures are expected to ease the liquidity pressure on businesses that are strapped for cash, said the people cited abov...
1 comment
Read more

Investing in Gold: Bridging Tradition with Modern Strategies in India

Follow us on -  LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/     Gold holds a special place in the hearts of Indians, deeply rooted in tradition and culture. For generations, it has been a symbol of prosperity, a hedge against economic uncertainties, and an integral part of auspicious occasions. As we step into the modern era, the allure of gold remains, but the ways we invest in it have evolved. Let's delve into the world where tradition meets contemporary investment strategies in the context of gold in India. The Timeless Appeal of Gold For centuries, Indians have revered gold not only for its aesthetic appeal but also for its intrinsic value. Traditionally, gold has been acquired in the form of jewelry, coins, or bars, often passed down through generations as a store of wealt...
Post a Comment
Read more

GST officers to be soon armed with real-time data on vehicles moving without e-way bills

  Follow us on -  LinkedIn  - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube  -  https://www.youtube.com/user/aseemaggarwal92 Twitter  -  https://twitter.com/aseem252 Blog  -  https://aseemconsult.blogspot.com/ The government is working on a system to soon provide report to GST officers on a real-time basis for those vehicles which are moving without e-way bills, to help intercept stuck trucks at toll plazas and check GST evasion. The tax officers would also be provided analysis reports on identifying e-way bill EWB with no movement of goods as it would help officials identifying cases of circular trading.  It would also provide reports on recycling of e-way bills for tax evasion prone commodities to help officers in identifying tax evaders. Under the Goods and Services Tax (GST) regime, e-way bills have been made mandatory for inter-state transportation of goods valued over Rs 50,000 from April 2018. However, gold is exemp...
1 comment
Read more