Standard GST rate should be applicable on small cars: SIAM
New Delhi: Automobile industry body Society of Indian Automobile
Manufactures (SIAM) on Thursday said that it has suggested to the government
that a standard GST (Goods and Services Tax) rate should be
applicable on small cars.
"Standard GST rate should be applicable on small cars,
MUVs (multi-utility vehicles), two wheelers, three wheelers and commercial
vehicles. Cars other than small cars should attract a GST rate which is 8 per cent more than the
standard rate," the industry body said in a statement.
"A lower
GST rate for electric vehicles, hybrid electric vehicles and other alternative fuel
vehicles, which should be at least 8 per cent less than the standard
rate."
According to SIAM, it has
studied the draft GST law in detail and given detailed feedback for
consideration of the government.
On September
30, Finance Minister Arun Jaitley had said that GST rates, service tax
assessments and the states` compensation will be decided in the GST Council`s
next meet on October 18-20.
The target roll-out of GST will
depend on the passage of the Central GST and the Integrated and GST (IGST)
bills in parliament and the respective state GST bills by each state.
The central government is
following the roadmap to implement the Goods and Services Tax (GST) by the
targeted deadline of April 1, 2017.
The GST is a single indirect tax
that proposes to subsume most central and state taxes like the Value Added Tax,
service tax, central sales tax, excise duty, additional customs duty and
special additional customs duty.
Source : Standard GST rate should be applicable on small
cars: SIAM