Govt considering auto sector demands, GST rate cut decision rests with the council, says FM

Finance minister Nirmala Sitharaman on Tuesday said the government will respond to demands of the automobile sector, which is facing a severe decline in sales.

Addressing a press conference in Chennai, the minister said the finance ministry is considering suggestions from automobile and auto component manufacturers. “We are working on a few things. Let’s see what comes out. We are conscious that we need to respond," she said.

The auto sales data in August showed that the monthly decline was the worst in 22 years. However, the finance minister stopped short of making any promise of tax cuts saying that the decision rests with the Goods and Services Tax (GST) Council.

The automakers have been demanding a reduction in GST rates on vehicles, which attract a tax rate of 28 percent. The GST Council is expected to take a decision on the matter at its upcoming meeting in Goa on September 20.