GST Council Meeting Tomorrow: Here's What It May Hold For Auto Industry

The auto industry is expecting some major changes from the GST Council meeting, which is scheduled to begin on September 3.

The Goods, Services Tax Council, led by Finance Minister Nirmala Sitharaman, begins a two-day meet today eto discuss a shift to a two-slab system expected to slash prices of daily-use items by reducing the brackets under which most goods are taxed.

A tax panel has proposed steep increases in consumer levies on luxury electric cars priced above $46,000, a government document showed, a move that could impact sales of carmakers such as Tesla, Mercedes-Benz, BMW and BYD.

At present, GST on premium economy, business, and first-class tickets is uniformly 12 per cent, applicable across all flights.

Lowering GST for under-350cc will help broaden access, but raising GST for above-350cc would damage a segment vital to India's global edge," Lal said.

Opposition-ruled states on Friday said the Centre's proposal for GST rate reforms could result in a revenue loss of about Rs 1.5 crore to Rs 2 lakh crore and demanded compensation for the losses incurred by them.

BMI, a Fitch Solutions company, said India is likely to remain one of the fastest-growing emerging market economies in Asia through this decade.

PM Narendra Modi announced on August 15 to bring "next-generation" GST reforms that will reduce the tax burden across the country.

The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.

The Centre's proposed reduction in GST is also expected to lead to a drop in costs for car buyers, reducing on-road prices as well as EMIs.

Proposed GST cuts on petrol and diesel vehicles could reduce EVs price advantage, slowing adoption while causing major revenue losses for the government - HSBC.

A key meeting of the Group of Ministers (GoM) on GST rate rationalisation on Thursday ended with state finance minister accepting the Centre's plan to reduce the number of tax slabs.

Over 50 million Micro, Small and Medium Enterprises in India, who have GST and Business PAN (B-PAN), can have digital procurement access through Amazon Business ahead of the upcoming festive season, the global e-commerce giant said on Thursday

The Lok Sabha on Wednesday passed a legislation to ban online games played with money as it looks to check rising instances of addiction, money laundering and financial fraud through such applications.