Responding to the GST announcements made by the Ministry of Finance, Shailesh Chandra, President, Society of Indian Automobile Manufacturers (SIAM), welcomed the Government’s decision to rationalise tax rates across the automotive sector. Mr. Chandra said, “The automobile industry appreciates the Government’s decision to reduce GST on vehicles to 18% and 40%, from the earlier 28% to 31% and 43% to 50%, respectively. This announcement, coming at the onset of the festive season, will bring much-needed relief to consumers and provide fresh impetus to the Indian automotive sector.
Mr Chandra further added, ” By making vehicles more affordable—particularly in the entry-level segment—this step will encourage first-time buyers and support middle-income families, widening access to personal mobility. We also thank the Government of India for maintaining the GST rate of 5% on Electric Vehicles, which will help sustain the country’s momentum towards green and sustainable mobility.”
He went on to say that, ” In addition, the resolution of classification-related interpretations and correction of the inverted duty structure will simplify processes across the industry, enhancing ease of doing business. We are confident that the Government will soon notify a suitable mechanism for utilisation of compensation cess on unsold vehicles, ensuring a smooth and effective transition.”
The Society of Indian Automobile Manufacturers (SIAM) is the apex body representing leading vehicle and engine manufacturers in India. Registered under the Societies Registration Act, 1860, SIAM operates as a non-profit organisation. Its mission is to support the growth and contribution of the automotive industry to India’s economy, promote responsible business practices, enhance environmental sustainability, and ensure road safety. Recognised for its charitable purpose under the Income Tax Act, 1961, SIAM plays a key role in shaping policy dialogue and industrial progress in the country.
