+
 ACMA aims uniform 18% GST for all auto components
ROADS & HIGHWAYS

ACMA aims uniform 18% GST for all auto components

The ACMA, which represents the auto components industry, has urged the government to impose a uniform 18% GST rate on all auto parts to reduce the impact of counterfeits in aftermarket operations.

The Automotive Component Manufacturers Association (ACMA) also asked the government to consider an upward vision of Remission of Duties and Taxes on Export Products (RoDTEP) rates in its pre-Budget recommendations, claiming that the 1% or lower rate notified for the sector is insufficient to cover the incidence of unrefunded taxes and duties borne on export products.

According to ACMA President Sunjay Kapur, the auto component industry, as an intermediary, has recommended a uniform GST rate of 18% on all auto components.

Due to the high 28% GST rate, the industry has significant aftermarket operations that are plagued by grey operations and counterfeits.

With the government's emphasis on the environment, energy security, and vehicle safety, Kapur said the auto component industry must invest in newer technologies and build capacity to meet the growing domestic demand for such products.

Kapur also praised the government's policy announcements on the Advanced Chemistry Cell (ACC) battery, auto and auto component PLI schemes, and the extension of the FAME-2 scheme.

The ACMA said an increase in RoDTEP rates, claiming that the current rate is hindering the Indian auto component industry's competitiveness.

The ACMA drew the government's attention to the importance of retaining the weighted tax deduction on R and D expenditure to encourage domestic R and D and testing.

The 2016-17 Budget reduced the weighted deduction benefit from 200% to 150%, and from April 1, 2020, the deduction will be reduced to 100%.

Aside from these recommendations, the ACMA said that it has made several suggestions to reduce India's cost of doing business.

Image Source

The ACMA, which represents the auto components industry, has urged the government to impose a uniform 18% GST rate on all auto parts to reduce the impact of counterfeits in aftermarket operations. The Automotive Component Manufacturers Association (ACMA) also asked the government to consider an upward vision of Remission of Duties and Taxes on Export Products (RoDTEP) rates in its pre-Budget recommendations, claiming that the 1% or lower rate notified for the sector is insufficient to cover the incidence of unrefunded taxes and duties borne on export products. According to ACMA President Sunjay Kapur, the auto component industry, as an intermediary, has recommended a uniform GST rate of 18% on all auto components. Due to the high 28% GST rate, the industry has significant aftermarket operations that are plagued by grey operations and counterfeits. With the government's emphasis on the environment, energy security, and vehicle safety, Kapur said the auto component industry must invest in newer technologies and build capacity to meet the growing domestic demand for such products. Kapur also praised the government's policy announcements on the Advanced Chemistry Cell (ACC) battery, auto and auto component PLI schemes, and the extension of the FAME-2 scheme. The ACMA said an increase in RoDTEP rates, claiming that the current rate is hindering the Indian auto component industry's competitiveness. The ACMA drew the government's attention to the importance of retaining the weighted tax deduction on R and D expenditure to encourage domestic R and D and testing. The 2016-17 Budget reduced the weighted deduction benefit from 200% to 150%, and from April 1, 2020, the deduction will be reduced to 100%. Aside from these recommendations, the ACMA said that it has made several suggestions to reduce India's cost of doing business. Image Source

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code