'Expect GST revision on auto from existing 28% to 18%'

Expectation will be towards the revision of GST on automobiles from the existing 28% to 18%, says Nagesh Basavanhalli

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By Nagesh Basavanhalli

The auto manufacturing and allied industry have endured one of the most challenging times in 2019 and is looking towards the year 2020 for revival. In this context, the industry needs a multi-facet budgetary intervention to jumpstart the demand and revive job creation in the sector.

The first aspect pertains to the future of mobility and the role of innovation in Cleantech being critical. Incentive programs through structured policy intervention is required to foster a culture of innovation fast-tracking technology development and deployment. In conjunction, the government should also extend certain benefits to last-mile EV fleet operators as a way to promote EV adoption for commercial movements.  

The government will have to consider certain progressive policy measures. Key among these will be the roadmap for nation-wide vehicle scrappage policy, this will reduce emissions and generating demand in the sector.  

We are also looking forward to the integration of EV manufacturers with Sector Skill Council of NSDC for upskilling the workforce. The collaboration will prepare employees to move from conventional technologies to the emerging ecosystem. 

In addition to these, the industry-wide expectation will be towards the revision of GST on automobiles from the existing 28% to 18%. This can lower the cost of ownership for consumers and spur demand. This will also allow the industry to sustain investments in R&D and introduce energy-efficient technologies to the market.  

Together, these measures will not only re-energize the industry but also help in its transformation for the future.

(The writer is the MD & CEO, Greaves Cotton Limited)