Budget 2022: FADA urges government to reduce GST on 2wheelers to boost sales

 








The Indian automobile industry has been battling a sales downturn since 2019 and the last two years have been especially worrisome. While 2020 witnessed a decline in sales because of BS6 emission norms and the COVID-19 outbreak, auto sales in 2021 suffered on the account of COVID-19 second wave, semiconductor shortage, and increasing commodity prices. In the wake of this, the Indian auto industry is once again pinning its hopes on the upcoming budget 2022 for some boost in sales and better business conditions. Ahead of Budget 2022, the Federation of Automobile Dealers Associations (FADA) has approached the government with a few suggestions that will improve things for the Indian auto sector. As has been the case in the last few years, FADA has urged the government to reduce GST to reduce the upfront cost of vehicles in India. But more specifically, FADA has requested for GST respite for the two-wheeler segment that is grappling with reduced demand, especially in the commuter segment.

Two-wheelers in India currently attract a GST rate of 28 per cent plus 2 per cent cess. It is the same rate that applies to articles under the luxury goods category in the country. However, FADA has urged that two-wheelers, especially commuter bikes, are more of a necessity for consumers rather than a luxury. Therefore, reducing the GST rate to 18 per cent will lower the upfront cost of two-wheelers and boost sales. The request to reduce GST rate gains importance when two-wheelers have been getting costlier because of increased input costs.

FADA has also requested the Indian government to bring down the rate of GST on used cars to five per cent from the current rate of 12 to 18 per cent. This step will help increase the share of the organized sector in the used car segment and thereby contribute to increased tax collections.

Besides these, FADA has also made other requests to the government that will help the Indian automobile sector. These include introducing benefits of claiming depreciation on vehicles, reintroducing Depreciation Scheme, and reduction of corporate tax for LLP, Proprietary and Partnership Firms to benefit dealer partners.



Download our App to get knowledge updates: https://play.google.com/store/apps/details?id=com.app.gstmitra


Join Our Telegram Channel for more updates:https://t.me/praveengst


Comments

Post a Comment

Popular posts from this blog

Centre appeals against ruling on levy of GST on maintenance charges to resident welfare associations

Image
  The Centre has preferred a writ appeal before the Madras High Court against a single judge's order that flat or villa owners paying more than ₹7,500 a month towards maintenance charges to their residents’ welfare associations must pay Goods and Services Tax (GST) at the rate of 18% only for the amount exceeding ₹7,500 and not for the entire monthly contribution. Justices T.S. Sivagnanam and Sathi Kumar Sukumara Kurup on Wednesday allowed an application filed by the Centre to dispense with production of a certified copy of the judgment passed by Justice Anita Sumanth recently and directed the Registry to list the appeal for admission in the usual course. Justice Sumanth had in July this year quashed an order passed by the Authority for Advance Ruling (AAR) on June 21, 2019 as well as a consequent circular issued by the Department of Revenue under the Union Finance Ministry on July 22, 2019 since both of them had insisted upon collecting GST for entire monthly contribution. The jud...
Read more

Seven key things to know before filing income tax return (ITR) for FY21

Image
  The last date to file income tax return for the financial year 2020-21 has been extended to September 30, 2021. Although there is more than two months left for the deadline to end, it is always recommended to complete the task as soon as possible and not to wait for the last minute. Worth mentioning here is that the income tax department last month launched a new e-filing portal (www.incometax.gov.in) to speed up the processing of tax returns. The I-T department will soon launch a mobile application, having all the features of the new portal. This year taxpayers have to take care of the following changes in the ITR filing process. 1) A new utility named JSON has been launched for filing tax return forms for FY21. At present, only three forms, ITR 1, 2 and 4 have been released. These new forms will import pre-fill data such as personal details, salary income, dividend income, interest income, capital gains and all the information available in Form 26AS. 2) Taxpayers will have the ...
Read more

Income Tax Dept detects ₹350 cr unaccounted cash receipts after raid in Rajkot

Image
  The Income Tax Department carried out a search and seizure operation on a real estate group based in Gujarat's Rajkot and found unaccounted cash receipts in various projects of approximately ₹350 crore, the Finance Ministry said on Friday. The group is among Gujarat’s prominent real estate builders and developers and is actively engaged in real estate, construction and land trading businesses in and around Rajkot. More than 40 premises were covered in the search operation. During the course of operation, many incriminating documents and digital evidences were seized indicating involvement of the group in unaccounted transactions. The IT sleuths found substantial evidence of transactions outside the regular books of accounts, unaccounted cash expenses, cash advances received and interest paid in cash. Evidence of on-money payments in real estate projects-flats, shops and land deals has also been found. Total unaccounted cash receipts in various projects of approximately ₹350 crore...
Read more