GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

UNSTARRED QUESTION NO: 2854
ANSWERED ON: 02.12.2016
Lack of Clarity on GST
MUTHAMSETTI SRINIVASA RAO (AVNTHI)
Will the Minister FINANCE

of

be pleased to state:-

(a) whether certain auto industry stakeholders have expressed concern over lack of clarity on GST and the time for its implementation, if so, the details thereof;

(b) whether the auto industry felt that tax differentiation in auto industry is huge when compared to other major markets, if so, the details thereof;

(c) whether this action is limiting the company to offer limited model line up to customers on bringing globally successful models to India due to competitive pricing pressure; and

(d) if so, the details thereof and the steps taken to redress auto major grievances?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SANTOSH KUMAR GANGWAR)

(a): Government has received representations from various auto industry stakeholders suggesting issues that need to be addressed before the implementation of the Goods and Service Tax.

(b): Excise duty structure for passenger vehicle (cars) is as under,-

Segment Excise

Small Cars of length not exceeding 4m:

a) Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven vehicles of engine capacity not exceeding 1200cc, and – 12.5%

b) Diesel driven vehicles of engine capacity not exceeding 1500 cc. – 12.5%

Mid Segment Cars:

Motor vehicles of engine capacity not exceeding 1500 cc-  24%

Large Cars:

Motor vehicles of engine capacity exceeding 1500 cc other than SUVs.  27%

Sports Utility Vehicles and other Utility Vehicles  30%

(c) and (d): As per the representation of the industry, during 2015-16 and 2016-17 (upto August, 2016), the sales in the passenger car segment has seen growth of 7.24% and 10.74%, respectively.

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Category : Goods and Services Tax (4288)
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Tags : goods and services tax (2854) GST (2440)

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