Posted On : 13 Mar, 2020
Automakers are requesting the Government to reduce the service tax on Vehicles to increase the sale of the same.
The automobile industry is the largest growing sector which contributes the maximum amount towards the GDP and also believes in providing direct and indirect jobs to the Indian population.
So, the panel committee has decided that decrease the GST rate which they are going to charge on the automobile segment and to lower down the road tax across
all over the state which is impacting the growth of the automobile sector.
So, in regards to the same, the Indian government has studied the same and decided to present the report on the same in the parliament.
Also, the auto sector has reported that decrease in the sale of the sector is due to the non-availability of the funds to the consumers, who are using the automobile; also the major reason is strict rules issued by the bank for giving the loans to the consumers and the major factor that most of the users who are using the automobile are the facing the challenge while paying the premium to the insurance companies and the rate increase in the GST which is being levied on the vehicles.
The major part is being contributed by the automobile industry towards the GDP and also they have given an opportunity to 37 million people.
At the time of demonetization, there was a dip in the sales of the automobile industry as the majority of the population does not have an adequate amount of money to purchase the vehicle.
With the slowdown of demonetization, the impact on the economy of the government got neutralizes.
So, further on, with the change in the government budget scheme to promote the replacement of old vehicles with modern vehicles the purchase demand of new vehicles has been increased and also as per the auto sector there is the reduction in import duty of the “lithium-ion battery” which helps in the movement of the negative electrode through an electrolyte to the positive electrode during discharge, and back when charging which work as an operating system for the vehicles.
Hopefully, you will get well equipped with the auto sector with a change in the infrastructure very soon.