Recently the ministry of road transport asked finance ministry for a GST rate cut on all the hybrid vehicles in order to boost their sales and confidence in the customers of such vehicles.
It is to be seen that the said agenda will be in the next GST council 37th meeting to be held in Goa on September 20. However, the finance ministry has said they will analyze the impression of GST rate cut on the revenue department.
Currently, there is 28 per cent applicable to all the vehicles excluding electric vehicles, bicycles, rickshaw, etc. Recently the ministry decided to cut GST rate on electric vehicles from 12 per cent to 5 per cent.
As per the Maruti Suzuki chairmen, “Personally, we would like to see GST benefits linked to cleaner cars. The government gave tax cut on EVs but hybrid should be given duty cut. There should be tax cut on CNG vehicles as well.”
The union finance ministry said that they will see through the matter on GST rate cut for hybrid vehicles which will further relax the auto industry situation right now.
The demand for electric vehicles may see a boost after this finalisation of GST rate, therefore, it is to be seen whether the finance ministry will opt for the GST rate cut and make easy for both the customers and the auto industry.