Auto Industry Seeks Two GST Rates For Passenger Vehicles

Automobile industry body Society of Indian Automobile Manufacturers is seeking two tax rates for passenger vehicles under the Goods and Services Tax regime instead of multiple rates levied currently, as part of its wish list for the upcoming Budget.

The industry body has also sought from the Finance Minister Arun Jaitley a special tax rate of 12 percent for electric and hydrogen fuel cell powered vehicles.

“The automotive industry has been suggesting two rates for cars in place of multiple tax rates, and requests the government to keep only two rates for vehicles under the GST regime,” SIAM said in its suggestions for the Union Budget 2018-19.

Currently, GST regime, small petrol cars with engine capacity less than 1200 cc attract 1 percent cess, while diesel cars with engine capacity of less than 1500 cc attract 3 percent cess, on top of the 28 percent tax.

Similarly, cess on hybrid cars, including mid, large and SUVs, remains at 15 percent, likewise those vehicles used for transport of not more than 13 passengers.

The auto industry has also urged the government for tax on used cars to be fixed at 5 percent GST on the differential value between sale and purchase price of the used car.

Similarly, in the electrical vehicle vertical, the industry has sought extension of custom duty concessions for additional critical components.

Besides, it has sought denial of any custom duty concessions to CBUs (completely built units) of electric vehicles to support 'Make in India' programme.

The industry body has also sought the government to clearly provide definition of CKD (completely knocked down)/ SKD (semi-knocked-down) units of electric vehicles.

Comments

12%, 18% GST rates to be merged in future; 28% on luxury, sin goods: FM

Also, there will be a very thin list of items in the highest tax slab of 28% Finance Minister Arun Jaitley on Thursday hinted at merging 12 and 18 per cent tax rates under GST once revenue collections pick up and said the top 28 per cent slab would be for a "very thin" list of luxury and sin goods. The Goods and Services Tax (GST), rolled out on July 1, currently has four tax slabs of 5, 12 18 and 28 per cent. There is also a zero per cent tax on certain essential daily use commodities. Speaking at the HT Leadership Summit, Jaitley said the new indirect tax regime started with multiple rates in order to keep the tax incidence around the same level that existed pre-GST. Stating that the country would eventually move to a two-tier GST, he said that how fast it could be done would depend on the revenue position of the government. "We have thinned down the 28 per cent bracket, we can thin down more and it can be at some stage c...

All about Reverse Charge under GST

Reverse charge is a mechanism where the recipient of the goods and/or services is liable to pay GST instead of the supplier. In this article, we discuss the following topics: 1. What is Reverse Charge? 2. When is Reverse Charge Applicable? 3. Time of Supply under Reverse Charge 4. What is Self-Invoicing? 5. Frequently Asked Questions(FAQ) 1. What is Reverse Charge? Normally, the supplier of goods or services pays the tax on supply. In the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed. 2. When is Reverse Charge Applicable? A. Supply from an Unregistered dealer to a Registered dealer If a vendor who is not registered under GST, supplies goods to a person who is registered under GST , then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier. The registered dealer who has to pay GST unde...

How many Returns are required to be filed under GST?

A business in most cases will be required to furnish 3 returns monthly and 1 annual return. That means any business will require to file 37 returns in a financial year. However there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS)

GST India

Search This Blog