Finance Ministry in consultation with states on Auto GST: Nitin Gadkari

The Minister of Road Transport & Highways said that the final decision to reduce the rate can only be taken by the GST Council.

Published: 11th September 2019 04:46 PM  |   Last Updated: 11th September 2019 04:46 PM   |  A+A-

Minister of Road Transport and Highways Nitin Gadkari

Minister of Road Transport and Highways Nitin Gadkari (Photo | PTI)

By IANS

NEW DELHI: Union Minister Nitin Gadkari on Wednesday said the Centre is in consultation with the state governments and will take a call on whether or not to reduce GST rate on automobiles. However, the final decision to reduce the rate can only be taken by the GST Council.

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According to the Minister of Road Transport & Highways and Micro, Small and Medium Enterprises, the Union Finance Ministry has been in consultations with various state governments and could bring in a rate reduction via the GST Council.

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"I am confident that the Finance Ministry with discussion with the state governments and if it is possible, they are very positive, they will take a decision (sic.)," the Minister said at the launch event of BS-VI variant of Honda Motorcycle and Scooter India's Activa.

Lately, the Indian automobile industry, which has been heavily dented by the consumption slowdown has been demanding a rate reduction from 28 to 18 per cent. On automobile scrapping, the Minister said that the government will support the industry and non-industry players to set up scrap yards and bring in new technologies in this arena.

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In addition, he told the gathering at the launch event that the Petroleum Ministry is ready to give its consent for setting up of Ethanol fuel pumps in the country.

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