The decline in demand in the auto sector continues. The decrease in demand is at its lowest level in the last two decades. In such a situation, the people of the auto sector have demanded a reduction in the GST rate from the government. GST Council is scheduled to meet on 20 September. Recently, Minister of State for Finance Anurag Thakur said that the Central Government wants the rate to be reduced, but in this case the Central Government cannot take a decision alone.
The decision to reduce or increase the rate is taken in the GST Council, which also includes representatives of the state. In such a situation, it also depends on the states to a large extent whether they are in favor of it or not. According to information received from sources, many states have opposed the rate cut. In such a situation, there is little hope that the auto sector will get relief in the GST rate in the meeting to be held on 20 September. If, it is also assumed that the rate cut is announced, then it will take some months to see its effect. At the moment, dealers have a challenge to clear the old stock.
On the other hand, if we look at the sales figures, it is worrying. According to SIAM data for the month of August, there has been a decline of 23.55 per cent in total sales. There has been a 41 per cent decline in passenger car, 31.57 per cent decline in total passenger vehicle, 38.71 per cent decline in commercial vehicle, 6.93 per cent decline in three wheeler vehicle and 22.24 per cent decline in sales of two wheeler vehicle.