ACMA pitches for uniform GST rate of 18 pc on all auto components

Automotive component industry body ACMA Thursday asked the government to ensure a uniform GST rate of 18 per cent on all auto components as part of measures to support the sector that is going through a downturn.

Automotive Component Manufacturers' Association (ACMA) further said there is also an urgent need to increase the rate of weighted deduction on R&D spend.

"The automotive industry is witnessing one of the most challenging times ever. Domestic consumption of all vehicle segments is witnessing negative growth. We hope that the measures in the forthcoming budget will lift the market sentiments and help the industry to be back on track," ACMA Director General Vinnie Mehta said in a statement.

He further said,"the auto component industry, being an intermediary, has recommended a uniform GST rate of 18 per cent on all auto components."
ACMA said,"the 2016-17 Budget reduced weighted deduction benefit from 200 per cent to 150 per cent and has further restricted the deduction to 100 per cent from April 1, 2020."