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GST and its impact on the Automobile Industry

Mar 06, 2017

Mixed Reactions To Union Budget 2017 From Auto Sector

There are hardly any path-breaking announcements made in the Union Budget 2017 to affect the auto sector – both from the perspective of auto manufacturers or the car buyer. There were expectations of at least some kind of announcement on the GST rollout which will standardise many aspects of the auto industry. But Finance Minister Arun Jaitley chose not to make any announcement on GST, keeping it for a later date. Reactions from the auto industry have been mixed with most auto makers welcoming the budget, but cautiously mentioning that more needs to be done to boost the automotive sector. Click to read more

Impact of GST on Automobile Dealers Industry

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country’s Gross Domestic Product (GDP). Almost 13% of the revenue from central excise is from this sector and claims a size of 4.3% of total exports from India. Despite its contribution to the economy and growth potential, this sector has been combating the hardship of high tax rates for substantially a long period of time now with central excise duty ranging between 12.5% to 30% coupled with introduction of multiple cesses at revenues whims and fancies, most recent being infrastructure cess. Click to read more

Automobile Industry heaves a sigh of relief, eyes are now riveted on implementation of GST

There were no surprises for the automobile industry in the Union budget. With the implementation of Goods and Services Tax or GST expected to be implement by July this year, the union finance minister Arun Jaitley has kept the excise duty structure unchanged.

This has come as no surprise to the industry and vehicle prices are unlikely to see any price revisions, due to the budget proposals. Click to read more

Union Budget 2017: Auto industry reactions

Our Finance Minister Arun Jaitley has presented the Union Budget 2017-18 in the Lok Sabha. Earlier, automobile manufacturers in our country had stated their expectations from the Union Budget. This time, here’s a round-up of the reactions from the automobile industry. Click to read more

Impact of GST on Automobile Dealers Industry

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country’s Gross Domestic Product (GDP). Almost 13% of the revenue from central excise is from this sector and claims a size of 4.3% of total exports from India. Despite its contribution to the economy and growth potential, this sector has been combating the hardship of high tax rates for substantially a long period of time now with central excise duty ranging between 12.5% to 30% coupled with introduction of multiple cesses at revenues whims and fancies, most recent being infrastructure cess. Click to read more

Budget 2017: Automobile players want speedy implementation of GST

The automobile industry has been on a bumpy road in the last few months. When the demand for vehicles had finally started recovering, the country was hit with the demonetisation bomb which led to a slowdown in the demand again.

While the impact of demonetization was varied on different automobile companies, the industry’s pace as definitely slowed down.

With about two weeks to go for the Buget, all eyes are on the Arun Jaitley to see what he may unleash to save the sector. Some players in the auto industry hope for quick implementation of the Goods and Services Tax (GST) which has been pushed back to July 1, 2017 for now. Click to read more

GST may fuel growth of domestic auto ancillary industry

The proposed GST implementation may fuel growth in the USD 39 billion domestic auto ancillary industry following lower taxation of 18 per cent under the new regime, industry experts said.

With the upcoming GST regime, the auto ancillary industry will get a boost. The auto ancillary industry’s effective rate of tax, which is currently at 28 to 30 per cent, is expected to come down to 18 per cent upon implementation of GST, the experts said. Click to read more

What does GST mean for Car Buyers?

The Goods and Services Tax (GST) has been the buzzword in the country for quite some time now. For the automotive sector, the GST is expected to bring down the price of small cars, which in turn, will hopefully help in the growth of the sector as a whole. Therefore, car buyers can expect a fair deal.

To comprehend the possible profits that a prospective car buyer might gain, let us see what the GST bill is expected to do. GST will cause the costs of logistics to reduce, thereby easing business processes. Luxury cars may have some benefits, which might involve a tax diminution of about 5 percentage. But, this will not be appropriate for luxury vehicles that are fully imported as completely built-up (CBU) units. Click to read more

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