Budget 2023: Auto Inc’s Wishlist includes GST rationalisation, R&D incentives

Industry stakeholders that rationalisation of GST will help bring parity and enable adding scale to manufacturing facilities.

Budget 2023: Auto Inc's Wishlist includes GST rationalisation, R&D incentives

The countdown for Budget 2023 has started and as the policy corridors get busy finalising the paperwork ahead of February 1, here is a quick look at Auto Inc is expecting –

Nirmal Minda, Chairman & MD, UNO Minda says “The government has taken lot of good initiatives in the last few years, the Production Linked Incentive scheme for auto component industry is one among them. But there are few suggestions that can further drive auto component industry ahead. First, improving GST structure by bringing all components tax structure at standard 18 percent to avoid dispute and ambiguities. Secondly, incentivising R&D by providing tax benefits, this will boost the make-in-India and Atmanirbhar Bharat vision.”

Dr Amitabh Saran- Founder and CEO Altigreen outlined the expectation of the EV sector, “We also look forward to rationalisation of GST rates. Currently, 5% GST is levied on EV sales but OEMs pay 28 percent GST for spare parts. Bringing them under the 5 percent bracket can lead to price reduction and an uptick in EV adoption (lower service costs). Range anxiety is one of the major challenges that has to be addressed by developing a robust charging infrastructure. We hope the government will provide more CAPEX subsidy (upto 40-50%) to install/setup charging infrastructure across India.”

Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India believes, “I strongly believe that Indian government will prioritise the policies that can benefit the infrastructure, manufacturing sector and promote renewable energy allowing the country to realize its potential on a global scale. Manufacturing investments must be encouraged among technology providers to bring self-reliant solutions in the country. Development of new-age manufacturing skills across the top and bottom of the pyramid must be enlightened which can be a game changer for further skill development.”

Mohal Lalbhai, Co-Founder and Group CEO – Matter added that, “ I would urge the government to create tax parity for lithium Ion batteries in line with EVs, i.e., 5% GST on Lithium Ion batteries used in stationary energy storage applications, to help accelerate the nation’s clean energy goal. While local manufacturing of Cells scales up in the future, mean time a reduction in customs duty on the import of lithium-ion cells would be critical to accelerate the adoption with the scale up of production . I am hopeful that government will also look at ways to relax regulatory norms to create a more favourable business environment.”

Rajat Verma, CEO & Founder, Lohum reiterated that “The Prime Minister has rightly acknowledged that India needs to develop self-reliance in energy security, and called for a #MakeinIndia circular economy. A circular economy of battery raw materials will boost India’s energy security and uplift domestic manufacturing. Government support can greatly accelerate this shift and magnify its rewards, which we hope to see in the budget this year.”

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 23-01-2023 at 12:14 IST