ACMA urges govt for 18% uniform GST across sector, notification on new definition of MSMEs

New Delhi, Aug 7 (KNN) The auto component industry, which comprises of many micro, small and medium enterprises (MSMEs), has urged the government to have uniform 18 per cent GST across the sector stating that low taxation would lead to better compliance and larger tax base.

“One of the key demands of the industry has been a uniform 18 per cent GST rate across the auto component sector. Currently 60 per cent of the components attract 18 per cent GST rate, while the rest 40 per cent, majority of which are two-wheelers, and tractor components attract 28 per cent,” President of Auto Component Manufacturers Association (ACMA) Nirmal Minda said.

ACMA also asked the government to create fund to support indigenous research and development and technology creation in the component industry.

“There is a critical need for creating a fund to support indigenous R&D and technology creation in the component industry as also for technology acquisition from other parts of the world,” Minda said.

Requesting the government to notify the new definition of micro, small and medium enterprises (MSMEs), ACMA said this would allow for larger number of companies to avail government incentives.