Question : Lack of Clarity on GST

(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,-
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
b) Diesel driven vehicles of engine capacity not exceeding 1500 cc.
12.5%


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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