 "GST Revamp, automobile manufacturer, Agriculture, GST rate cut")
Automobile
Key impact
- Relief from long-pending disputes around GST rates on auto components with a single GST slab of 18%
- Lower rates effectively increase disposable income, strengthen purchasing capacity, and support broader consumption growth
- EVs retain tax edge, but reduced gap also makes hybrids attractive
- Compensation cess relief on larger cars (including SUV and luxury vehicles) increases credit fungibility
Way forward
- Reassess pricing structures to manage profitability, dealer margins, and customer expectations
- Manage inventory & working capital
- Align distribution chain in terms of pricing, managing returns, promotional schemes, compliance requirements to minimise disruptions and disputes
- Review state incentives, subsidies and initiate dialogue with
