GST Reduction Car Pries: The auto sector has been facing lethargy since the beginning of this year. But now a ray of hope is seen. It is believed that this Diwali government can change the GST rates, due to which the prices of vehicles can be seen a big cut.
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Government preparation – Tax reduced from 28% to 18%
At present, 28% GST is imposed on small cars and two-wheelers. It is reported that the government is considering to reduce this tax to 18%. If this happens, the auto industry will get tremendous relief and it will be easy for customers to buy vehicles.
Call of sales – sector struggling with decline (GST Reduction Car Pries)
The auto sector has been under pressure for some time. Except the tractor, almost all segments have decreased sales. Two-wheeler sales have fallen by about 4%. Passenger vehicle sales have also decreased by about 1% on an annual basis. At the same time, the commercial vehicle segment has appeared relatively stable.
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What will be affected by tax deduction? (GST Reduction Car Pries)
If the GST decreases to 18% on two-wheelers and small cars, then both customers and companies will get direct benefit. The prices of vehicles can be about 7% cheaper. Demand will rise in the festive season due to decrease in the price. The auto sector can get speed again due to increasing two-wheeler and passenger car sales.
Shine may increase in festive season (GST Reduction Car Pries)
The time of Diwali is considered important for the sale of vehicles anyway. If the GST cut is applied this time, then customers will move forward to buy a large number of vehicles. This will not only accelerate the sales of auto companies but will also be positive in the overall atmosphere of the market.
