The-Volumes-Will-Com-Down

""Now regarding diesel and gasoline, it becoming zero is not going to happen in a hurry.Commenting on frequent changes in regulations, he said any sudden change has an impact on the business and that is a concern generally among the industry.The government has notified hike in GST cess on a range of cars from mid-size to luxury variants Pedal assist electric scooter manufacturers to a maximum of 25 per cent, from the earlier 15 per cent.However, the quantum of cess hike in each variety of car would be decided by the GST Council, chaired by Union Finance Minister Arun Jaitley and his state counterparts, in its next meeting on September 9.Mahindra & Mahindra said the proposed hike in GST cess on SUVs and bigger cars should not be implemented during the festive season.end-ofTags: goods & services tax, cess on luxury cars, mahindra & mahindraLocation: India, Maharashtra, Mumbai (Bombay)Related StoriesFinMin says considering auto makers' concern on hike in GST cessCabinet clears Ordinance to allow hike in GST cess on carsCabinet may this week consider hike in GST cess on cars.

The company said that the move to raise cess by 10 per cent should not be implemented during festive season.Referring to government39;s plan to promote electric vehicles in the country, Goenka said: "What (Union Transport Minister Nitin) Gadkari said is something that is being said in many countries today -- that the future is electric. While we are big supporters of electric vehicles, I think the hybrids also need policy support," he said. "I think different policy is required for mild hybrid vehicles and full hybrids.He also asked the government to clearly define 39;luxury39;. clearly the volumes will come down.He added that the company has already invested Rs 500 crore on electric vehicle development and has also committed an additional Rs 600 crore for the vertical. The industry size is very large.When asked about hybrid cars, Goenka said the industry has asked for a relook at the policy regarding the segment.The company said that the move to raise cess by 10 per cent would have an adverse impact on the auto industry. Goenka said the difference between luxury and normal car was 6 per cent during pre-GST era. "My view is that right now we have implemented GST, industry is stabilising, we have grown in past couple of months, festive season is around the corner, we should not touch the rates for time being," M&M Managing Director Pawan Goenka told reporters here.

"It was not 10 per cent, so the GST Council should take that into consideration," he said.."He added: "It should not be done during the festive period and whatever needs to be done should be done after it. "There should be a clear definition and on that basis put cess on luxury and the tax, I think, should be in the order of about 6 per cent," Goenka said. Electric vehicles cannot ramp up to that size in 10-12 years," Goenka said.New Delhi: Utility vehicle major Mahindra & Mahindra (M&M) on Thursday said the proposed hike in GST cess on SUVs and bigger cars should not be implemented during the festive season."He said that even though there is no disagreement that luxury items need to be taxed more, 43 per cent is reasonably high indirect tax on an item.When asked about the possible impact of increase in cess, Goenka said: "Obviously if prices go up, it will impact the demand.Speaking on the sidelines of SIAM annual convention, he added that the government should wait for some time to see the results of GST implementation and then decide if hiking the tax is required in certain categories of vehicles.