GST fitment panel pegs annual revenue loss of Rs 50,000 crore if tax rates applicable on the automobile sector are cut.
GST fitment panel pegs annual revenue loss of Rs 50,000 crore if tax rates applicable on the automobile sector are cut, TV news channel CNBC TV18 reported citing sources. The GST Council takes the final decision to make any changes in the tax structure of the items under its jurisdiction. The next GST Council meeting is scheduled on September 20, 2019. The Fitment Committee, a panel of officials of the GST council, held a meeting on the previous Friday to find out the possibilities of a GST rate cut to revive the slowdown and boost the auto sector ahead of the upcoming festive season.
The auto companies have been asking for GST rate cut in the middle of slowdown on account of muted consumption demand. In August, the suto firms registered their worth decline in sales in all segments the Society of Indian Automobile Manufacturers (SIAM) reported on Monday. This is the steepest fall in overall vehicle sales since the data recording began in 1997-98. The vehicle sales across categories, including passenger vehicles (PVs) and two-wheelers and commercial vehicles (CVs), stood at 1,821,490 units last month as against 2,382,436 units in August 2018, a fall of 23.55 per cent, the data showed.
Meanwhile, the GDP recorded a dismal growth of 5 per cent in fiscal year 2020. It was the slowest growth since 2013 on account of weak activity in sectors including services and manufacturing, agriculture and construction. The government announced a slew of measures in the past few weeks so as to boost growth and improve the investor setiment. China grew at 6.2 per cent in the June quarter of the ongoing fiscal, according to its official data.