Covid-19 impact: Govt looking at GST rate cut for automobile sector

The government is likely to include auto components under the production linked incentive (PLI) scheme and evaluate local content and bring in value addition to automobile companies

The Centre on Friday assured support to leaders of the auto industry which has been severely hit by the pandemic. At the 60th annual conclave of the Society of Indian Automobile Manufacturers (Siam), Union Cabinet ministers including Nitin Gadkari, Piyush Goyal and Prakash Javadekar listed out a series of possible measures such as a scrappage incentive scheme and reduction in the goods and services tax (GST) rate to revive the auto sector.

“The demand push has to be done immediately. The GST Council will have to take into account the revenue impact and other factors. I hope you get some good