The Society for Indian Automobile Manufacturers (SIAM) has urged the GST Council, a body formed to look into and decide on issues regarding the goods and services tax, to review the highest rate of 28% GST being reviewed on commercial vehicles (CVs). The recommendation comes even as commercial vehicles recorded a strong 27% year-on-year growth in the July-December period. Sugato Sen, deputy director general, SIAM, said: “In case of customs duty, commercial vehicles have been kept separately from any other type of vehicle, so here why should they be kept together with personal vehicles at 28%. The GST rates need to be looked at again.”
Sen had approached the government regarding this issue. “What the government says is that since trucks are deployed for commercial activities, they can take input tax credit and so it should not be a big problem.”
