New Delhi: Automobile industry body Society of Indian Automobile Manufactures (SIAM) on Thursday said that it has suggested to the government that a standard GST (Goods and Services Tax) rate should be applicable on small cars.
"Standard GST rate should be applicable on small cars, MUVs (multi-utility vehicles), two wheelers, three wheelers and commercial vehicles. Cars other than small cars should attract a GST rate which is 8 per cent more than the standard rate," the industry body said in a statement.
"A lower GST rate for electric vehicles, hybrid electric vehicles and other alternative fuel vehicles, which should be at least 8 per cent less than the standard rate."
According to SIAM, it has studied the draft GST law in detail and given detailed feedback for consideration of the government.
On September 30, Finance Minister Arun Jaitley had said that GST rates, service tax assessments and the states` compensation will be decided in the GST Council`s next meet on October 18-20.
The target roll-out of GST will depend on the passage of the Central GST and the Integrated and GST (IGST) bills in parliament and the respective state GST bills by each state.
The central government is following the roadmap to implement the Goods and Services Tax (GST) by the targeted deadline of April 1, 2017.
The GST is a single indirect tax that proposes to subsume most central and state taxes like the Value Added Tax, service tax, central sales tax, excise duty, additional customs duty and special additional customs duty.