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07-Aug2018

India's auto component industry seeks uniform 18% GST across sector

Indian auto component manufacturing industry sought uniform 18 percent Goods and Services Tax (GST) rate across the sector and stated that low taxation would not only ensure better compliance, but would also ensure a larger tax base. Besides, it said that the lower tax levy would also help in curtailing flourishing of grey operations in the aftermarket.

Automotive Component Manufacturers Association of India (ACMA) President Nirmal Minda has indicated that presently, 60 percent of the components attract 18 percent GST rate, while the rest 40 percent, majority of which are two-wheelers, and tractor components attract 28 percent. He also elaborated that there is a need for creating a fund to support indigenous R&D and technology creation in the component industry as also for technology acquisition from other parts of the world. Minda said “As we prepare for the introduction of electric mobility in the country, a well-defined, technology agnostic road map with clear responsibilities of each stakeholder will go a long way in ensuring a smooth roll out as also leading to creation of a local supply base for the same.”

According to ACMA, the Indian auto components industry registered a growth of 18.3 percent to Rs 3.45 lakh crore for the first time in the financial year 2017-18. Also, exports of auto components grew by 23.9 percent to Rs 90,571 crore from Rs 73,128 crore in 2016-17.


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