GST Council unlikely to back tax cuts for automobile sector: Reports

A govt study has said the total annual revenue loss could be as much as Rs 50,000 cr, if the panel decided to lower tax rates for the auto sector to 18% from 28%

The goods and services tax (GST) panel is unlikely to approve lowering the tax for the auto and allied components sector this week, as a study has warned of major revenue losses, two government officials said.

A government study, attached to the agenda of a Sept. 20 GST panel meeting, has said the total annual revenue loss could be as much as Rs 50,000 crore ($6.95 billion), if the panel decided to lower tax rates for the auto sector to 18% from 28%.

Meanwhile, state officials in Kerala, Punjab and West Bengal say they are also opposed to any cut in tax