Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

Auto sector fears higher GST rate on certain parts after Supreme Court ruling.


Date: 16-08-2021
Subject: Auto sector fears higher GST rate on certain parts after Supreme Court ruling
Several automobile and auto component companies have approached the government after the indirect tax department initiated enquiries to tax certain components at a higher rate under the goods and services tax framework (GST).

Their concern is that the indirect tax department could now slap 28% GST on these components instead of 18%,following a Supreme Court ruling.

The ruling, in an entirely different matter, said that GST rates can differ based on “sole and principal” use test.

The GST framework is a nuanced tax system that categorises and defines each product, item and then decides the tax rates.

Under chapters 86, 87, 88 and 89 of the framework, several auto components are defined, and these are taxed at 28%.

Apart from these, there are components that are not defined, as they have multiple uses, apart from being used in cars and bikes, and these are taxed at 18%.

Following the SC  ruling, even the ones that are taxed at 18%, will be taxed at 28% under the GST framework, say tax experts.

Many domestic suppliers as well as importers would now be required to cough up higher taxes. In most cases, companies are still paying the old taxes, but the tax department’s inquiries would mean a dispute and litigation going ahead, warn legal experts.

“Supreme Court ruling has negatively impacted the automobile sector, resulting in benefits for railways and airlines,” said Rohit Jain , partner at law firm 

Source:economictimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 22-11-2023
Notification No. 13/2023 -Customs (ADD)
Seeks to further amend notification No. 47/2021-Customs (ADD), dated 26th August, 2021, imposing Anti-dumping Duty on imports of "Natural mica-based pearl industrial pigments excluding cosmetic grade" from China PR, to modify the existing duty table .

Date: 21-11-2023
NOTIFICATION No. 12/2023-Customs (ADD)
Seeks to continue levy of anti-dumping duty on "Synthetic Grade Zeolite 4A (Detergent Grade) from China PR for 5 years pursuant to First Sunset Review Final Findings issued by DGTR."

Date: 17-11-2023
NOTIFICATION No. 11/2023-Customs (ADD)
seeks to impose anti-dumping duty on toughened glass for home appliances imported from China PR for a period of 5 years.

Date: 17-11-2023
NOTIFICATION No. 54/2023- Central Tax
Seeks to amend Notification No. 27/2022 dated 26.12.2022 to notify biometric-based Aadhaar authentication for GST registration in the State of Andhra Pradesh.

Date: 16-11-2023
Notification No. 84/2023 - Customs (N.T.)
Exchange Rate Notification No. 84/2023-Cus (NT) dated 16.11.2023-reg

Date: 15-11-2023
Notification No. 83/2023 - Customs (N.T.)
Exchange Rate Notification No. 83/2023-Cus (NT) dated 15.11.2023-reg

Date: 15-11-2023
Notification No. 82/2023-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 02-11-2023
Notification No. 16/2023- Union Territory Tax (Rate)
Seeks to amend Notification No 17/2017- Union territory Tax (Rate) dated 28.06.2017.

Date: 02-11-2023
NOTIFICATION No. 53/2023– CENTRAL TAX
Seeks to notify a special procedure for condonation of delay in filing of appeals against demand orders passed until 31st March, 2023.

Date: 02-11-2023
Notification No. 81/2023 - Customs (N.T.)
Exchange Rate Notification No. 81/2023-Cus (NT) dated 02.11.2023-reg



Exim Guru Copyright © 1999-2023 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001