The introduction of GST has led to various affirmative influences on the automobile sector. In the erstwhile taxation regime, dealers could not claim the credit of Excise duty, CST, and various cess which was paid earlier, thus inflating the purchase price of the vehicle. In GST regime, CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax) paid will be fully available as credit to the dealers dealing in further supply of vehicles, thereby they will not add to the purchase price of the vehicle. In other words, the GST has eliminated the cascading effect of taxes, and thereby reducing the price of automobiles.
Source: businessworld.in
Latest Posts in "India"
- GST on Dine-in, Takeaway, and Delivery App Orders: Rates, Compliance, and Reporting Differences
- Ensuring ITC Compliance: Mastering GSTR-2B Reconciliation and Audit Readiness for 2026
- India’s E-Invoicing Rules: Scope, Formats, Penalties, and Compliance Under the GST Framework
- Continuous Supply of Services Under GST: Legal Criteria Versus Commercial Practice Explained
- Tripura HC: ITC Cannot Be Denied to Bona Fide Purchaser for Supplier’s Tax Default
