Categories: Business

Not right time for GST cut on auto says Maruti Suzuki chairman

Photo: FILE

Maruti Suzuki

new Delhi. The country's largest car company Maruti Suzuki India on Wednesday said that this is not the right time to reduce the rate of Goods and Services Tax (GST) on vehicles. This will not be of any benefit as the production of the automobile industry is currently at the lowest level. Maruti, which has around 54 percent share in the domestic passenger vehicle market, said that if any reduction in the tax rate is also proposed, it should be done at the right time.

Maruti Suzuki chairman RC Bhargava told reporters at a video conference here that in the situation we are currently in, the production of all automobile companies will be very low for the next one or two months. So, there is no justification for reduction in GST tax rate. Bhargava said this in response to a question asked about the reduction in GST.

Bhargava said that the reduction in the GST tax rate would be appropriate only when the demand for vehicles would be higher than the supply and the production could actually be raised to a higher level. He said that only then will the companies benefit from the GST deduction. The government should consider it. There is definitely no need to do it immediately.

This post was published on May 13, 2020 9:09 pm

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