Auto: GST 2.0— Proposed Rationalisation Likely Before Festive; Maruti Suzuki, M&M Among Motilal Oswal Top Pick

It is expected that SUVs, which currently attract GST rates between 43% and 50%, would now fall under the new 40% rate. If the cess is removed, then even SUVs are also likely to benefit from the GST rate cut, albeit to a lower extent compared to other segments like cars, two-wheelers, three-wheelers, etc..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Currently, GST operates in four slabs of 5%/12%/18%/28%. The auto sector in general falls in the 28% slab with an additional compensation cess based on various classifications, pushing tax rates higher. The Finance Ministry has recently proposed a simplified GST rate structure, in which it seeks to remove the 28% (merge it with 18%) and 12% slabs (merge it with 5%) and keep a 40% peak slab for few “sin goods”. If this were to be approved, the 18% slab would contribute to the majority of GST collections (80%), 5% would be for essential goods and 40% for a few sin goods..What could be the potential timelines? As of now, the GoM has approved this three-slab structure, which will now have to be approved by the GST Council, which is scheduled to meet on Sep 3rd, 4th 2025. The GoM’s approval would also indicate that a lot of groundwork has already taken place to ensure a smooth implementation by the government. As per the expert, the GST Council meeting, which was scheduled for the third week of Sep’25 earlier, seems to have been preponed to ensure that in case there is a need to deliberate one more time, another meeting can be held in the third week of Sep’25. Once this proposal is passed by the GST Council, the rate change can be notified in a few days and the implementation date can be announced.Thus, there is a high likelihood that the decision is likely to be taken before this year’s festive season, which would also mean that OEMs would not lose out on festive sales.Click on the attachment to read the full report:.Petronet LNG Shares Can Rally 50% Says Motilal Oswal; Volume Recovery, New Capacity Key Triggers For Re-Rating.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Auto: GST 2.0— Proposed Rationalisation Likely Before Festive; Maruti Suzuki, M&M Among Motilal Oswal Top Pick

The GST Council is expected to meet on Sep 3rd-4th, 2025 to finalize the new rate structure, If finalised, the new rates can be notified in a few days.

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