How GST will Impact the Indian Automobile Industry

Slides:



Advertisements
Similar presentations
1 Roadmap to Goods & Service Tax - By CA Raghav Bajaj © Copyright Raghav Bajaj.
Advertisements

Tax System Reforms in India: The Centre-State Dimension M. Govinda Rao Director, National Institute of Public Finance and Policy.
Goods & Service Tax Discussion on Challenges & Synergies August, 2010.
BUSINESS AND MANAGEMENT MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT.
Chapter 8 The Impact of Economic Forces.
Preparing for Goods & Service Tax Presentation by : CA. Pulak Saha
GST – FIRST CUT VAT in INDIA…  1986 – modvat for inputs  1994 – modvat for capital goods  2002 & 2003 – service tax credit  2004 – cross-sectoral.
GST (Goods & Service Tax)
DETAILS Project.
Presented By: CA Anirudh Sonpal
Essential Standard 1.00 Understand the role of business in the global economy. 1.
Inflation Lesson Two A Reflection – Inflation Lesson One Understand Savings and Investment, Interest Rates and Economic Activity, Fiscal Policy, and Net.
ECONOMICS. Economy Types There are four types of economy in the United States Agricultural Service Industrial Information.
ECONOMICS Chapter 5 Section 3. Key Terms  subsidy: a government payment that supports a business or market  excise tax: a tax on the production or sale.
 If it costs more to make a product, a company has less incentive to produce a product. Your book calls the costs to make a product “input costs.” Any.
By MASTER MONEY EQUITY ANLYSIS INSTITUTIN PVT LTD.
Financing the Government. Taxes and Revenue Progressive tax – the higher the income, the higher the rate Payroll taxes – taxes matched by employers Regressive.
GOODS AND SERVICES TAX (GST). Goods and Services Tax (GST) is a single tax rate levied on the manufacture, sale and consumption of goods and services.
Highlights Of Model Goods And Service Tax Law GST WELCOME DELEGATES PRESENTED BY CMA S.K.BHATT-CHAIRMAN NIRC of ICAI-CMA, New-Delhi Telefax : ,
GST Legislation: Fixation of Rate of Tax can be Most Problematic Customer Care No
‘ G’ - Goods ‘S’ - Services ‘T’ - Tax JYOTI RAJ ADVOCATE
GST and its effects on industries like Manufacturing, Goods Transportation Services etc.
ANTI- PROFITEERING IN GST
CREDAI ECGC CONFERENCE
Goods and Service Tax Rambabu Pathak Chairman ICAI-Asansol Chapter
GST-SEZ A big debate surrounding the Special Economic Zone (SEZ) Units/ Developers after model GST Law was released in November 2016 was whether up-front.
Will cover following points
What is the Impact of GST on Real Estate Sector
PHASE I 3rd GST FAMILIARISATION PROGRAMME 03/05/2017.
PRESENTATION ON OVERVIEW OF GST Subodh Vora & Co. Rotary Club
GST The Game Changer Presentation by CA Mahesh Jain 23rd August 2015.
Goods & Service Tax Considered the biggest policy reform in the country since Independence Amalgamating several Central and State taxes into a single tax.
GST IMPACT ON SOLAR POWER PROJECTS.
OVERVIEW Taxation System What Is GST ? GST Application GST Model
IMPACT OF GST ON AUTO INDUSTRY
GOODS AND SERVICES TAX TRANSITIONAL PROVISIONS
TELECOM SECTOR Telecommunications/Telephone companies and internet service providers and plays the crucial role in the evolution of mobile communications.
GST Update for Assocham
Will GST have an Impact on the Cement Industry?
Government Policy Instruments
What is Supply? Economics Ch. 5 Section 1.
Analyzing the Economic Impact of Taxes
2.5, 2.6 Monetary and Supply-side Policies
Chapter 5, Section 1 What is Supply?.
Department of State Taxes Government of Nagaland
WHAT IS GST? “Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and service at a national level.
WELCOME.
A PRESENTATION BY CS HARSH CHAUHAN ACCOUNTS OFFICER BSNL
Fiscal Policy: Spending & Taxing
Overview of GST (Goods and services tax)
ELECTRICAL ENGINEERING
GST – General Awareness & E-Way bill Processing Systems
Supply E.11, 14, 16, 17.
Gross Domestic Product and Economic Growth
Where does this money come from?
INTRODUCTION TO GST.
Macroeconomics Intro to GDP.
Law of Supply Supply Schedule Price Quantity $ $40 90 $30 70 $20
Chapter 5 Section 3.
Economics of Specialisation
Chapter 5: Supply Section 3
The Strategy of International Business
Background behind implementation of GST
Economic Activity in a Changing World Chapter 3 pp
REFORMS IN DIRECT AND INDIRECT TAXES: IMPACT ON COMMON PEOPLE
Fiscal Policy: Spending & Taxing
Measuring economic activity
Chapter 5: Supply Section 3
Goods and Services Tax (GST) is a single tax reform that is applicable across all states in India. This GST taxation will replace all the existing indirect.
SLID E Measuring Economic Activity Economic Conditions Other Measures of Business Activity Economic Activity.
Presentation transcript:

How GST will Impact the Indian Automobile Industry

GST Impact on Automobile Industry The Automobile Industry, the Implementation of GST would result in manufacturers spending lower taxes and the customers may also be profited. Though, while the bill has been explained in the present session, it has to be okayed by the state assemblies and The GST deadline proposed by the Govt is April 2017. There have been several speculations regarding the impact of the GST on various sectors such as oil and gas sector, Telecom sector.

The Automobile Industry is likely to earn from the new tax reform and the auto companies are requiring growth with the implementation of the GST in India. This will decrease several unnecessary logistics cost, remove trade hurdle and give better interstate sales and delivery.

GST Impact on Automobile Industry Further, with the effective tax rate dropping to around from 27 percent to 18 percent, the demands of the automobiles will get boosted. It is considered that the on-road prices will go lower by 8 percent after the implementation of GST. The automobile creators have raised their views on the GST.

How will the GST profit the Automobile Sector? GST will be a positive effect for the automobile sector primarily because of the efficiency and the removal of cascading that is required with GST. And, to provide you an example, in an automobile sector, a car is manufactured in a particular state and frequently, 80 percent of these cars are sold to states outside the state of manufacturers to dealers outside the state. So, today to accurate away give you an example, the two percent Central Sales Tax (CST) that they pay will not be there tomorrow because surely, origin tax is not there.

How will the GST profit the Automobile Sector? Despite the two percent, CST will be a combined GST (IGST) which will be fully creditable by the dealer when he sells the car in the other state. And even from a appropriation point of way, if there are interstate appropriation we suffer today at 2 percent CST which is a cost to the manufacturer, that also will not happen because those interstate appropriations will have an IGST in it which is again available as a full credit to the manufacturer if the credit rules are easy.

POSITIVE IMPACT ON AUTO SECTOR Vehicle prices -  The excise duty for vehicles is arranged into four slabs, in which the modest tax rate is applicable to small cars. With GST implementation, taxes levied by the centre similar excise duty and state levels taxes like sales tax, road and registration tax would all be subsumed into one. Assuming that the proposed tax rate of 18- 20 percent is accepted, the vehicle prices are expected to decrease. 

POSITIVE IMPACT ON AUTO SECTOR One Market -  The overall compliance burden is required to decrease and bring a higher efficiency in operations. From the Indirect tax perspective, the entire country will be treated as 'One Market' and will add to operational efficiencies.

Overall economic activity is required to raise and we could require a better GDP growth that should push demand for vehicle across categories. The impact of Tax cascading will go away that will decrease the overall cost of vehicle manufacturing. Every taxes on input paid will be offset by the output liability of GST.      Read More @  GST Impact on Automobile Industry