SIAM Automotive Taxation Conference: Experts call for stability in tax regime

The industry leaders also called for the need to streamline indirect and direct tax policies to improve sectoral competitiveness.

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The Society of Indian Automobile Manufacturers (SIAM) held its second Automotive Taxation Conference with discussions on the role of tax policy in supporting the sector’s growth and contribution to the economy. The event brought policy and industry experts together who deliberated on the impact of taxation on the industry, including the proposed GST rate cuts.Shashank Priya, Special Secretary and Member (GST, CX&ST), CBIC, Ministry of Finance, said the government is working towards rationalisation of GST rates, controlling disputes, and boosting consumer sentiment. He added that measures such as early refunds of inverted duty structure, increased auto-filled data, and a defined time frame for credit note reconciliation are being considered.Other officials, including Vivek Ranjan, Member (Tax Policy and Legal), CBIC; Bhaskar Goswami, Joint Secretary, CBDT; and Nisha Gupta, Senior Vice President, GSTN, also outlined improvements under consideration to support ease of doing business.

Industry views on reforms

V. Lakshmikumaran, Founder and Managing Partner, Lakshmikumaran & Sridharan Attorneys, said the automobile industry is vital for mobility and one of the most employment-intensive sectors in India.The industry leaders also called for the need to streamline indirect and direct tax policies to improve sectoral competitiveness.

Rajesh Shukla, Chairman, SIAM Taxation Policy Group and Head of Indirect Taxation, Tata Motors; Rajeev Goyal, Chairman, SIAM Taxation Procedural Group and CFO – Auto & Farm, Mahindra & Mahindra; and Sanjeev Agarwal, Chairman, SIAM Direct Tax Group and Head of Taxation and Customs, BMW India, highlighted opportunities to streamline taxation procedures and policies.

Arnab Roy, CFO, Maruti Suzuki India, said GST had been a game changer, providing 99 per cent ease of compliance, reducing tax arbitrage, and restoring economic rationale to business planning. He stressed the need for stability in tax policy to encourage investment and research.

Vivek Anand, CFO, Hero MotoCorp, said India had seen major reforms in direct and indirect taxation in the past decade, and the next step should be rationalisation of GST slabs along with addressing classification and input credit issues. The conference concluded with SIAM emphasising the importance of collaboration between industry and government to build a taxation framework that supports growth, innovation, and sustainability.