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SIAM requests Govt for temporarily GST cut to boost automobile demand

SIAM requests Govt for temporarily GST cut to boost automobile demand

SIAM requests Govt for temporarily GST cut to boost automobile demand

As the automobile industry is severely affected due to the outbreak of the coronavirus pandemic, Society of Indian Automobile Manufacturers (SIAM) has urged the government to reduce the GST rate by 10% across all vehicle categories. After the nationwide lockdown, the whole production of the automobile and sales have come to a complete standstill. (Hope govt soon announces measures to support auto industry: SIAM)

Society of Indian Automobile Manufacturers President Rajan Wadhera said, “Demand creation would be a very big challenge due to negative consumer sentiments and hence SIAM is looking forward to a stimulus package from the Government of India which should include temporary reduction in standard GST rate by 10% across all vehicle categories and also introduction of an incentive based Vehicle Scrappage Scheme with incentives in the form of 50% rebate in GST, Road tax and registration charges.”

As reported earlier, the industry is losing Rs 2300 crore per day due to the closure, which may now last till May 3. SIAM said availability of low cost finance would also be imperative to bring back growth in the sector.

Recently, Finance Ministry issued a notification extending the policy renewal dates of motor insurance till May 15. The notification pertains to the mandatory third-party insurance cover only and does not include the comprehensive motor insurance policies.

This extension is for policies that are due for renewal between March 25 and May 3. For third party motor insurance, if the customer fails to renew it on time, there is no grace period. In fact, a penalty of Rs 2,000 can be charged for driving a vehicle without third party motor insurance.

“The move is taken to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal so that any valid claim triggered during the grace period can be paid,” the Finance Ministry said in a notification.

 

 

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Deepika Chauhan

Hello, I am Deepika Chauhan an automobile enthusiast. Presently working as a Media Manager and Writer. My aim is to guide and teach ways to manage, grow and scale business.
Earlier, I have been a part of Asian News International (ANI) as a Sub-editor cum Producer.

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