Auto industry unanimous on its demand for GST cut to 18%, says SIAM

The auto industry is unanimous on its demand for an immediate GST reduction on automobiles to 18 per cent, SIAM said on Friday.

Society of Indian Automobile Manufacturers (SIAM) said the need for an immediate reduction in goods and services (GST) rates has been agreed unanimously amongst all members of the automobile manufacturers, including the two-wheeler original equipment manufacturers (OEMs).

"This was also reiterated at a recent meeting with the finance minister where all OEMs representing passenger vehicles, commercial vehicles and two wheelers had actively participated," SIAM President Rajan Wadhera said in a statement.

SIAM said Hero MotoCorp Chairman Pawan Munjal had also emphasised on this point on immediate GST reduction at the meeting with finance minister Nirmala Sitharaman earlier this week.

The auto industry body's clarification comes after report of differences among leaders of the industry on the time for a GST cut.

Bajaj Auto Managing Director Rajiv Bajaj has been reported to have preferred reduction in GST on automobiles closer to BS-VI implementation next year in April, as it would soften prices for vehicles which would otherwise become costlier due to the new emission norm.

At present, automobiles attract GST of 28 per cent with additional cess of ranging from 1 per cent to 22 per cent.