Goods and Service Tax Rate issues faced by various industries
By Ranjeet Mahtani and Sweta Rajan During its meetings on May 18 and 19, 2017, the GST Council declared the placement of goods and services across the fixed GST rate slabs. The GST Council further released the list of goods liable for GST Compensation Cess along with the applicable rate of cess and released a list of services which would be liable to GST under the reverse charge mechanism. While the GST law empowers the Government to specify goods and services on which GST is payable by the recipient, the Council has approved only services that are likely to attract GST on reverse charge basis. Rate specific issues The release of the GST rates has, as expected, triggered varying responses across industries. Some ...
Auto sector to contribute 12% to India's GDP in next decade: Geete
The Dollar Business Bureau Heavy Industries and Public Enterprises Minister Anant Geete said on Thursday that the country’s automobile industry is expected to contribute 12% to the GDP (gross domestic product) over the next decade, from the current 7.1%. “Indian automotive sector plays a very important role in the country's manufacturing sector and is likely to contribute 12% to the country's GDP over the next decade,” Geete said. He said this while inaugurating a test track facility set up in Chennai by Global Automotive Research Centre (GARC) - a unit working under the National Automotive Testing & R&D Infra Project (NATRiP). The Minister said that commissioning of this facility is likely to attract greater investments in the automotive industry and its components and also expressed confidence that such ...
Demonetisation halts auto sector growth, sales decline in Nov
The Dollar Business Bureau The demonetisation has affected almost every sector in the country. The rapidly-growing automobile sector in India has witnessed a drop of around 5% in the month of November, the first in this year. All the vehicle segments posted a decline, be it commercial vehicles, two-wheelers, or three-wheelers. This was the sharpest decline in the past 3.5 years. The sector had last witnessed a drop of 7.75% in March 2013. However, in December 2015, the sector posted a drop, when the volumes declined by just 0.17%. According to the data by Society of Indian Automobile Manufacturers (SIAM), around 1.56 million units of vehicles were sold in the local market in November, a drop of 5.48% compared to 1.65 million units in the same ...
Auto sector asks for rupee trade with African nations
The Dollar Business Bureau Indian automobile industry has approached the government to consider a rupee-based payment system for trading with African nations since, as it said, the sector faced hurdles in the dollar denominated pay out from these countries. “We have approached the Ministry of Commerce for rupee trade with African countries as we are facing a challenge in dollar trade in these big export markets like Algeria and Nigeria,” said Sugato Sen, Deputy Director of Society of Indian Automobile Manufacturers (SIAM). Sen said since some African countries cannot make payments in dollars, Indian automobile industry is witnessing a limited trade with these nations. He urged the Ministry of Commerce to negotiate rupee trade terms with these countries. The industry has also asked for ...
'Auto exports poised for higher growth this year'
Deepak Kumar | The Dollar Businesss Despite the global slowdown, India’s auto exports are likely to gain further momentum as there are favorable reasons to expect wide-scale growth, said experts. “Currently, India’s automobile industry is at a very interesting curve. Last year was great from the point of view of India’s automobile exports. Despite the global slowdown, India’s auto export is expected to scale further,” an industry expert told The Dollar Business. In April-August 2015, India’s automobile exports grew at 8.60%. Commercial vehicle exports recorded the maximum growth at 25.86%, followed by three wheelers at 23.53%, two wheelers at 6.60% and commercial vehicles at 4.92% over the same period last year. In the financial year 2014-2015, overall automobile export registered a ...
'Auto component makers must focus on quality to reduce imports'
The Dollar Business Bureau The automobile industry has asked their component suppliers to focus on developing technology-based high-end products through improvisation and innovation in order to match global quality standards and reduce imports. “What the industry has achieved in last 10 years is commendable. 3x (three times) growth in revenue, 5x (five times) growth in export, but at the same time export is lower than the import. That means approximately Rs.80,000 crore sitting there, which could come on this side of ‘Make in India’ when you import it,” said Pawan Goenka, Executive Director & Group President (Automotive & Farm Sector), Mahindra & Mahindra. “We still lack technology to develop high-end components,” Goenka said citing an example of air bags that are ...
Auto component exports from India expected to grow seven-fold
The Dollar Business Bureau Automotive components manufacturing is expected to get a major boost with the ‘Make in India’ initiative and the industry hopes to increase its overseas shipment by seven times in the next ten years. “When the prime minister put forward the idea of Make in India, several Indian as well as foreign industrialists have stepped up to realise this dream. The government is attempting to do everything to meet industry’s expectations. Currently, the whole world is watching our steps closely. They know India is possibly the biggest market right now,” Heavy Industries & Public Enterprise Minister Anant Geete said at the national conference of Automotive Component Manufacturers Association of India (ACMA). The last decade has been profitable for ...
Make in India, auto industry to push aluminium production in India
The Dollar Business Bureau Aluminium production in India is expected to see a significant rise due to growing demand for the metal triggered by “Make in India” as well as revival of the country’s automobile industry. Experts say that the demand for the metal will increase significantly, especially in infrastructure and automobile sectors. In the recent past, several aluminium manufacturers have rolled out their plans to expand the production capacity to meet the future demand. NALCO, a public sector unit (PSU) and one of the largest aluminium producers, has announced an investment of Rs 5,540 crore to set up a 1 million tonnes alumina refinery at Damanjodi town of Koraput district in Odisha. “With a view to boost the ancillary and ...
