‘stAndArd Gst rAte should Be ApplicABle on smAll cArs’

NEW DELHI: Automobile industry body Society of Indian Automobile Manufactures (SIAM) has said that it has suggested to the government that a standard GST (Goods and Services Tax) rate should be applicable on small cars. “Standard GST rate should be applicable on small cars, MUVs (multi-utility vehicles), two wheelers, three wheelers and commercial vehicles. Cars other than small cars should attract a GST rate which is 8% more than the standard rate,” the industry body said in a statement. “A lower GST rate for electric vehicles, hybrid electric vehicles and other alternative fuel vehicles, which should be at least 8% less than the standard rate.” According to SIAM, it has studied the draft GST law in detail and given detailed feedback for consideration of the government. The target roll-out of GST will depend on passage of the Central GST and the Integrated and GST (IGST) bills in parliament and the respective state GST bills by each state.