Automotive Component Manufacturers Association (ACMA), the apex body for the Indian auto component industry, has urged the government for early implementation of Goods and Services Tax (GST).
As part of its recommendations for the upcoming Budget, ACMA also sought government's support in achieving $200 billion turnover from existing $38.5 billion as stated in the Automotive Mission Plan 2026.
"We expect the forthcoming Budget to lead to creation of a favourable and stable policy environment to enable growth and development of the domestic auto sector," ACMA President Arvind Balaji today said in a statement.
ACMA also urged the government for early implementation of GST and phasing out Central Sales Tax (CST).
"There is an urgent need to reduce multiplicity and complexity of applicable taxes through early implementation of GST," it said.
The industry body said that many companies are not getting adequate duty drawback benefits, as the focus is to progressively reduce the product weight.
ACMA therefore has recommended that the weight cap for engineering products should be waived off.
The association also demanded allowing input credit on diesel.
"Due to power shortage, manufacturers have to resort to generating their own power through gen-sets thus increasing the cost of production. ACMA has recommended that such manufacturers be allowed to avail input credit on diesel procured for internal power generation," it said.