Not the right time to cut GST rate on vehicles: Maruti Suzuki
India’s largest car company Maruti Suzuki India on Wednesday said that this is not the right time to reduce the rate of Goods and Services Tax (GST) on vehicles. This will not be of any benefit as the production of the automobile industry is currently at the lowest level. Maruti, which has around 54 percent share in the domestic passenger vehicle market, said that if any reduction in the tax rate is also proposed, it should be done at the right time.
Maruti Suzuki chairman R. C. Bhargava told reporters at a video conference here, “In the situation, we are in now, in the next one or two months the production of all automobile companies will be very low. So there is no justification for the reduction in the GST tax rate. ”He was asked whether this is the right time to cut the GST tax rate for the auto industry affected by the Coronavirus epidemic crisis.
Bhargava said that the reduction in the GST tax rate would be appropriate only when the supply of vehicles is more than the demand and the production can be increased to a really high level. He said, “Only then (GST deduction) will there be any benefit.” The government should consider it. There is certainly no need to do it immediately. “