Automobile Industry seeks only 2 tax rates under GST

New Delhi Dec 17: The Automobile Industry in India has urged the government to fix only 2 GST rates on all passenger vehicles. The Automobile industry body SIAM has presented their concern with the Finance Minister as a part of the pre-budget consultation.

The Industry has also sought a special tax rate of 12 percent for electric and hydrogen fuel cell powered vehicles.

SIAM Members have said that "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."

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

Currently, hybrid cars, including mid, large and SUVs, vehicles used for transport of not more than 13 passengers occur a cess of 15 %.

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