Automakers asked to display GST price cut posters with PM Modi’s photo

Another official estimated that the automobile industry could collectively spend at least ₹20–30 crore on printing and distributing the posters, which are expected to be placed at dealerships by the end of this week.

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New Delhi: The Ministry of Heavy Industries (MHI) has directed automobile manufacturers, including carmakers and two-wheeler companies, to display posters at dealerships across the country showing the difference in vehicle prices before and after the recent goods and services tax (GST) rationalisation. The Business Standard reported according to government officials and industry executives, the instruction — routed through the Society of Indian Automobile Manufacturers (SIAM) — also requires the posters to carry a photograph of Prime Minister Narendra Modi. Automakers are currently preparing designs and submitting them to the ministry for approval before display. The exercise has raised questions within the industry over cost-sharing between companies and dealers, and whether multilingual versions of posters will need separate approvals. “There is no precedent for this activity. So, we have to see if we need approval for just the main poster — which would be in English — or for a poster developed for each language,” an industry executive said. Another official estimated that the automobile industry could collectively spend at least ₹20–30 crore on printing and distributing the posters, which are expected to be placed at dealerships by the end of this week. Luxury carmakers have been exempted from the mandate. Major companies including Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, Toyota and Kia have already announced they will pass on the full benefits of the GST cut to buyers, leading to price reductions across models. Last week, the GST Council reduced tax on small cars (under 4 metres in length and up to 1200 cc for petrol and 1500 cc for diesel) to 18 per cent from 29–31 per cent earlier. For larger cars (over 4 metres, with engines above 1500 cc and ground clearance exceeding 170 mm), rates were cut to 40 per cent from 50 per cent, with the Centre withdrawing the compensation cess.