Tata Motors Expects Positive Outcome From GST Council Meeting On Friday

Tata Motors Ltd. on Thursday exuded confidence in government taking a positive call on the auto industry's demand for a tax cut on vehicles at the Goods and Services Tax Council meeting on Friday.

The automobile industry, which saw the steepest volume plunge in August in nearly two decades, has long been demanding lowering of GST on automobiles to 18 percent from the present 28 percent to boost demand.

"The auto industry can live with or without GST rate cut but an announcement (on whether the taxes are going to be lowered or not) is needed," said Guenter Butschek, managing director and chief executive of Tata Motors said.

Stating that the people have cancelled orders expecting GST cut, leaving showrooms empty, Butschek said, "our expectation is that a decision would be taken by Friday evening after the GST Council meeting."

Vehicle sales saw its steepest fall in August in two decades, slumping 31.57 percent to 1,96,524 units from 2,87,198 units in the year-ago period.

Butschek also said despite Finance Minister announcing some succour to the auto industry with cheap financing, continuation of BS-IV vehicles till the expiry of their registration period, among others, has not yet brought back normalcy in the sector as credit is still a long tunnel away.