Auto component industry demands uniform GST on all products

ENA Sectors 2023-01-18 11:32:48 New Delhi, Jan 17 (KNN) The Auto component industry has urged the government to levy a uniform 18 per cent GST on all the auto components, according to a report in the Deccan Herald. Currently, there are two GST rates that are applied on the auto components. One is 18 per cent and the other is 28 per cent. Around 60 per cent of what we produce is taxed at 18 per cent and the remaining 40 per cent is at 28 per cent. We are an intermediary industry and want the entire rate to be uniform at 18 per cent, Vinnie Mehta, Director General, Automotive Component Manufacturers Association of India (ACMA), told DH in an interview. <a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a> As per reports, the 28 per cent tax on some auto components is leading to counterfeiting and sale of spurious products. The industry body is of the view that a uniform 18 per cent tax will help curb these practices. When the tax rates are high people try to adopt different methods to avoid taxes, he said. We have an aftermarket which is about 15-16 per cent of our overall market. The rate of GST on quite a few items sold in the aftermarkets is 28 per cent. Because of this high rate, there is evasion, he added. Mehta in an interview also pointed out that loss of revenue due to bringing down taxes on some items from 28 per cent to 18 per cent would be partly offset by better compliance and a curb on the sale of spurious products. The production-linked incentive (PLI) is expected to provide a significant boost to the Indian auto component industry in the coming years. The scheme for the automobile and auto component industry has been implemented with a budgetary outlay of Rs 25,938 crore. (KNN Bureau) 31980 https://knnindia.co.in/news/newsdetails/sectors/auto-component-industry-demands-uniform-gst-on-all-products 2023-01-18 11:32:48 knnindia.co.in Auto component industry demands uniform GST on all products