GOVERNMENT OF INDIA
MINISTRY OF FINANCE
UNSTARRED QUESTION NO: 2854
ANSWERED ON: 02.12.2016
Lack of Clarity on GST
MUTHAMSETTI SRINIVASA RAO (AVNTHI)
Will the Minister FINANCE
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?
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,-
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%
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.