Prior to the official GST Council meeting scheduled to be held on Friday, September 20, the committee officials have rejected the plea of various industries requesting GST reduction in order to boost sales and generate demand. Among the industries whose request has been rejected includes the Indian Automotive Industry. The Indian auto industry is currently witnessing one of the worst times in its history. The Industry is currently taxed at 28% and was pleading to a temporary relaxation in taxes to 18%.
Ahead of the crucial meeting the committee of officials has rejected the demands from the auto sector with their reasoning being that it will affect Centre and State tax collections. The Automotive sector alone contributes to almost Rs 50,000-60,000 crore to the total GST revenue collections and the committee is of the view that the rate cut in GST would hurt this collection. However, the Council will take the final call on the recommendations made by the Fitment Committee following the scheduled meeting on Friday.
India’s Economic growth hit an all-time low since the last six years at 5% for the first quarter of the current financial year the government has announced a slew of measures to reinvigorate the sagging growth. The Council will meet on Friday n Goa to discuss and provide a cut in tax rates from various industries to beat the slowdown in the economy.
Sitharaman recently made a statement where she mentioned many factors that in her opinion has lead to the downturn of the auto sector. One of the factors she mentioned sparked controversy as she blamed millennials who prefer to use Ola or Uber, instead of buying their own private vehicles. In true internet fashion, the internet went into a frenzy with memes and keyboard warriors taking to their social media platforms to express their views on her statement and completely ignoring the rest of the statement made by the minister. However, after some research and number crunching, we have created a transparent report to find out if Sitharaman’s statement has any substance to it. To read the full story, click here.
With inputs form PTI