Auto stocks slide on report GST Council unlikely to back tax cut for sector

A government study has said the total annual revenue loss could be as much as Rs 50,000 crore if the panel decides to lower tax rates for the sector to 18 per cent from 28 per cent.

Shares of automobile companies, including auto ancillary firms, traded lower on Wednesday on report that the goods and services tax (GST) panel is unlikely to approve lowering the tax for the sector this week, as a study has warned of major revenue losses.

According to this Reuters report, a government study, attached to the agenda of a September 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 per cent from 28 per