Finance Minister Nirmala Sitharaman on Tuesday said the authorities might reply to the needs of the car industry, that is dealing with the worst stoop in two many years. Sitharaman’s guarantee to the automobile industry got here in advance of the GST Council meeting, slated for September 20.
The FM, while speakme to the media here on one hundred days of the Modi government 2.Zero, stated, “We are aware that we need to respond.” When asked about a possible rate cut on motors, Sitharaman said that name could be taken with the aid of the GST Council at its meeting in Goa next week. She, but, brought that some of the enterprise pointers had already been taken into consideration.
The domestic income of passenger cars fell 31.6 in keeping with cent year-on-12 months to 196,524 gadgets in August, consistent with the information released by means of the Society of Indian Automobile Manufacturers (Siam). The 10th instantly month of decline turned into additionally the steepest for the reason that 1997-ninety eight when Siam commenced recording enterprise statistics. The industry has been disturbing a GST fee cut from the modern-day peak price of 28 percent.
According to the fitment committee’s estimates, there can be a capability sales loss of around Rs 50,000 crore yearly in case the GST rate inside the vehicle sector is decreased from 28 in line with cent to 18 in keeping with cent.
The fitment committee, comprising kingdom and vital officials, met a closing week and estimated that of the general sum, Rs 22,000 crore may be misplaced if the price is reduced for automobile elements on my own.
The overall revenue from the automobile zone is pegged at approximately Rs 3 trillion annually.
The fitment committee avoided recommending any reduce in view of the revenue implications of the sort of pass, leaving the rate discount name to the political elegance on the GST Council.
At the media briefing in Chennai on Tuesday, Sitharaman also said the GST revenue collection wanted attention. “Need to widen the scope and challenge,” she delivered.
The GST collections failed to touch the centered Rs 1-trillion mark in August. The collections for the month stood at Rs ninety-eight,202 crores, after breaching the Rs 1-trillion figure in July. This became the second one month inside the current financial yr that the collections fell short of Rs 1 trillion.
“The car zone, which had right times till two years in the past, is affected because of diverse other troubles too,” stated the Finance Minister. She indexed out transfer over to BS-VI emission norms and registration fee-related matter (which the government postponed later) as reasons for the automobile zone slowdown. Also, she noted surveys to factor out that millennials like to use Ola, Uber or Metro rail, as opposed to committing EMIs in the direction of the car. In the passenger vehicle section, marketplace leader Maruti Suzuki India posted 36.14 in line with cent decline in its August income at ninety-three,173 gadgets.
According to statistics released by using SIAM, two-wheeler sales — a key barometer of the agricultural economic system — also dropped by using 22.24 in line with cent to at least one,514,196 units towards 1,947,304 gadgets within the same period closing 12 months. Wary of piling inventory, companies resorted to conserving onto their stock. They additionally cut production, which brought about a decline in a dispatch to dealers.
“We are running with all the sectors throughout u . S. To apprehend the problem and taking measures additionally. This authority listens to everybody and we also are taking measures. Two important announcements had been made in August and September and greater are expected”, she stated.
Last month, the FM had introduced several steps consisting of making BS-IV vehicles bought as much as March 2020 operational for the entire duration of registration. Also, she lifted the ban on the buy of motors with the aid of government departments and allowed extra 15 in step with cent depreciation on cars received till March 2020.
On the dip in GDP increase, she stated, ‘’I am not underestimating it or sitting right here without responding to do something to reinforce it to develop higher. But it does show up.’’ Pointing out that it’s part of the boom cycle, the FM said, ‘’I am now not going to harp on the sooner times while it has happened. …. Sometimes it dips in some sector and rises once more. Our efforts now are to look away to upward push within the subsequent region”.
Responding to the criticism of the government getting access to the accrued reserves of the Reserve Bank of India, she stated it was accessed with the aid of the governments in the beyond too. It’s primarily based on a system that has been arrived at with the aid of the relevant committees, she said.
While mentioning that financial institution mergers had been introduced for the banks to gain from every other, the FM stated the date of merger needed to be decided by the boards of respective banks.
On the removal of Article 370, to withdraw the special reputation of Jammu & Kashmir, the minister stated it become a long-time dream of the BJP.