The automobile industry’s demand for lowering GST levied and the possible rate cut proposal has put on hold for certain categories of their products has been put on hold. Therefore, the rate cut proposal is not likely to find favour from the government in the coming days.
Top finance ministry sources cited that the proposal for a possible rate cut has been put on hold with the sales of vehicles across the spectrum increased. Another key reason for recalibration is the unavailability of vehicle inventory with manufacturers because they are transiting from Euro IV to Euro VI emission norms.
After relaxation in Covid-19 restrictions and lockdown, the Indian automobile industry’s has grown by 14.7% in June this year. However, the total domestic sale has risen to 12, 96,807 units say the SIAM (Society of Indian Automobile Manufacturers) report. The data is in comparison to 11, 30,744 units sold in June 2020.
Not only this, the two-wheeler sale has registered 4.03 per cent, domestic passenger vehicle sales increased by 119.31 per cent to 2, 31,633 units in June 2021 from 1, 05,617 units as compared to the same month previous year.
Meanwhile, the vehicle production has jumped by 54.73 per cent to 16, 93,639 units in June 2021 from 10, 94,554 units in June 2020, whereas, vehicle export shot up by 81.70 per cent to 4, 47,319 units in June 2021 from 2, 46,190 units in June 2020.
The Revenue Secretary Tarun Bajaj said, “I would be very happy to engage with you to see what we can do even on GST tax rates, what is the tinkering we can do to see to it that certain (vehicle) segments get the encouragement they deserve” at a conference organized by SIAM.