The Indian auto industry is one of the largest in the world. You can understand the importance of this sector from the fact that it contributes about 7.1% of the country’s GDP.
GST or the Goods and Services Tax has been introduced in the country on the 1st of July 2017. It has subsumed most of the indirect taxes that were prevalent in the earlier VAT-excise regime. Under the new regime, car manufacturers will have to pay lesser taxes and ultimately, it will be the end customer who will gain. The taxes which have been subsumed by the GST on automobile services are sales tax, sector tax, VAT, motor vehicle tax, registration duty and others.
Before the implementation of GST, the Indian Automobile Industry offered pre-GST discounts on cars, scooters and bikes. Maruti Suzuki, Honda and Ford India recorded much domestic growth.
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