Goyal to auto dealers: Pass on GST rate cut benefits to consumers

New Delhi, Sep 10 (PTI) Commerce and Industry Minister Piyush Goyal on Wednesday urged auto dealer associations to pass on the benefits of Goods and Services Tax rate cuts to consumers.

Addressing the Auto Retail Conclave organised by the Federation of Automobile Dealers Associations (FADA) here, Goyal also said that India is concluding free trade agreements (FTAs) and it would give greater market access to the domestic industry.

Foreign companies too are keen to invest in India as the country provides a huge domestic market, he said, adding "with FTAs happening, you will see a greater variety of cars coming into India. if you get them sufficient business, they may want to start manufacturing in India".

"I am sure the federation of auto dealers will give a good deal to all their buyers of two wheelers, three wheelers, four wheelers, who are hopefully going to come to you in larger numbers in the years to come, with automobiles becoming more affordable, and obviously, I'm assuming you will pass on that benefit to the consumers...22nd September, first day of Navratri, you'll start passing on the benefits of the GST reductions," he said.

Auto makers have started announcing cuts in vehicle prices.

The GST Council has approved limiting slabs to 5 per cent and 18 per cent effective from September 22, the first day of Navaratri. Petrol, LPG and CNG vehicles of less than 1,200 cc engine capacity and not more than 4,000 mm length, and diesel vehicles of up to 1,500 cc capacity and 4,000 mm length would move to the 18 per cent rate.

He appealed to the industry to promote the sale of "swadeshi" products in the country.

Goyal underlined the critical importance of after-sales service, availability of spare parts, and continued support for customers, even in situations where companies decide to discontinue specific models or exit the Indian market entirely.

He observed that there have been cases where companies set up operations in India, only to wind up and leave after some time, creating challenges for customers who had purchased their products.

In such instances, the responsibility often falls on dealers to address consumer concerns, he said.

To prevent disruption and protect buyers, he suggested the creation of a framework or charter that would require all companies operating in India to commit to maintaining a local presence and providing after-sales support for a defined period before they are permitted to close operations.

This, he emphasized, would ensure that customers are not left stranded and that the credibility and trustworthiness of the automobile sector are maintained.

The minister added that the government has undertaken significant and serious efforts to make it easier to do business in the country. This includes reducing unnecessary harassment, streamlining multiple government procedures, simplifying compliance requirements, and minimizing bureaucratic processes that can create obstacles for the sector.

He invited industry stakeholders to compile and submit suggestions at the central, state, and local levels on how business operations could be further facilitated.

These suggestions could relate to reducing compliance burdens, simplifying existing laws such as the Motor Vehicles Act, or decriminalising minor offences that currently create hurdles for companies.

Goyal assured the sector that all recommendations would be carefully reviewed and taken up with the relevant authorities across government, with the aim of creating a smoother, more efficient, and more supportive business environment for the automobile industry. PTI RR MR MR