Indian Automobile Industry under SIAM proposes to the government to have only two GST rates for passenger vehicles instead of multiple ones. The SIAM (Society of Indian Automobile Manufacturers) recently highlighted this request amongst few suggestions they were planning to present in the upcoming Union Budget 2018-19.
1. In the current GST scenario, small petrol cars with displacement less than 1200cc attract 1% cess while diesel cars with displacement less than 1500cc attract 28% GST and an additional 3% cess. At the sametime, cess for vehicles including sedans, SUVs and other vehicles which carry less than 13 people are at 15%. The Industry body requested to bring this together as one tax instead of having multiple taxes for different vehicles.
2. The SIAM seeks to fix GST for used cars at 5% on the differential value between sale and purchase price of the used car.
3. The Industry has also requested Finance Minister ArunJaitley to allocate a special tax rate of 12% for electric and hydrogen fuel cell powered vehicles.
4. Another request would be to grant extension of customs duty concessions in the electric vehicles market.
5. The industry also solicits the government to deny custom duty concessions on CBU (Completely Built Up) units thereby expressing their whole hearted support to the Make In India programme.
6. The SIAM has also asked for clear definition of different segments of electric vehicles launched in India like CKD and SKD.
7. The industry body has also requested Finance Ministry to avoid compensation cess on 10-13 seater ambulances.