Auto Components Industry Seeks Uniform 18% GST
Auto component industry sought uniform 18 percent Goods and Services Tax across the sector stating that low taxation would lead to better compliance and larger tax base.
The industry, which reported a growth of 18.3 percent to Rs 3.45 lakh crore in 2017-18, said the lower tax levy would also help in curtailing grey market operators.
"One of the key demands of the industry has been a uniform 18 percent GST rate across the auto component sector. Currently 60 percent of the components attract 18 percent GST rate, while the rest 40 percent, majority of which are two-wheelers, and tractor components attract 28 percent," Automotive Component Manufacturers Association of India President Nirmal Minda told reporters.
ACMA further sought creation of a fund to support indigenous research and development and technology creation in the component industry. Besides, it also sought a clear technology agnostic road map for electric mobility in the country.
As we prepare for the introduction of electric mobility in the country, a well-defined, technology agnostic road map with clear responsibilities of each stakeholder will go a long way in ensuring a smooth roll out, and also lead to the creation of a local supply base for the same.Nirmal Minda, President, ACMA
The industry body also advocated for a change in the micro, small and medium enterprises definition as that would allow larger number of companies to avail government incentives.