Automobile industry would have to "find its own balance" to boost demand, with GST Council declining to cut rates for sector, said  industry body, Society of Indian Automobile Manufacturers (SIAM) on Saturday. " auto industry was very hopeful of GST reduction. It is clear that re is reduction of GST rate on vehicles from 28 per cent to 18 per cent," Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said in a statement. industry has to find its own balance to enhance demand, he added.

Industry's demands

GST Council, which met in Goa on Friday, did t cut tax rates on automobiles. industry had been demanding a GST rate cut from current 28 per cent to 18 per cent in order to revive sales which have been facing a prolonged slowdown. auto components industry too had demanded a uniform GST of 18 per cent. At present, 60 per cent of auto components are taxed at 18 per cent, while rest are in 28 per cent slab. Wadhera expressed hope that festive season would help in ushering in positive consumer sentiments.

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On reduction of GST compensation cess 

According to Wadhera, reduction of GST compensation cess for sub-segment of 10-13 seaters with length less than 4 metres is a positive step as industry had been demanding it for a long time. "SIAM had requested for abolishing compensation cess for whole segment of 10-13 seaters vehicles, however, benefit has been partially met," Wadhera said. He also expressed hope that recent measures taken by finance minister will support growth and once market stabilises and revenue rises to comfortable levels, government would be able to rationalise GST levels and reduce rates on vehicles. all-powerful GST Council on Friday anunced a slew of measures, including slashing tax rate on hotel room tariffs and more than doubling tax on caffeinated bevers to 40 per cent. 

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