New Delhi. Now less than a month is left for the presentation of the Union Budget (Budget 2022-23). Finance Minister Nirmala Sitharaman is going to present the budget for the financial year 2022-23 (FY23) on February 1, 2022. Everyone is waiting what the Finance Minister announces in this budget. At the same time, the auto parts industry is demanding 18 percent GST rate on all auto parts in the budget.
Demand to increase RoDTEP rates
The Automotive Component Manufacturers Association (ACMA), one of the largest associations of the Indian auto component industry, in its recommendations to the government for the Union Budget, has been demanding a uniform GST rate of 18 per cent on all auto parts. It has also asked the government to increase the duty and tax exemption i.e. RoDTEP rates on export products to increase investment in research and development.
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Automotive industry is passing through challenging times
ACMA President Sanjay Kapoor said that the automotive industry is witnessing one of the most challenging yet interesting times ever. The pandemic has helped bring new technology and mobility to the IT sector. The recent policy announcements by the government on PLI scheme for ACC battery, extension of PLI and FAME-II scheme for auto and auto components are indeed long pending which needs to be worked upon.
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Fake and gray market is increasing in auto parts
Kapoor said that they are recommending a uniform GST rate of 18 per cent on all auto parts. There are significant aftermarket operations in the industry, mostly with the GST rate of 28 per cent, due to which the counterfeit and gray market in auto parts is on the rise. Reducing the rate of GST will help in eliminating this gray market.
Tags: auto, Budget, GST