GST, is expected to benefit all the stakeholders as it will lower the cost of goods and services.
New Delhi: Owing to the rollout of the Goods and Services Tax (GST) on July 1, Nissan Motor India Pvt. Ltd. on Thursday announced that it will pass on the benefits of the GST to its customers pan India, with an average price reduction of three percent on the company's products, depending on the city and model specification.
"The implementation of the GST is a positive move for both automobile manufacturers and customers. We are happy to pass on the benefits to our customers for a more attractive value proposition," said Arun Malhotra, Managing Director, Nissan India Private Ltd.
GST, which was rolled out at midnight on June 30, is expected to benefit all the stakeholders namely industry, government and consumer as it will lower the cost of goods and services give a boost to the economy and make the products and services globally competitive, giving a major boost to 'Make in India' initiative.
Under the GST regime, exports will be zero-rated in entirety unlike the present system where refund of some of the taxes does not take place due to fragmented nature of indirect taxes between the Centre and the states.
However, the GST will make India a common market with common tax rates and procedures and remove economic barriers.
The GST is largely technology driven and will reduce the human interface to a great extent. The GST is expected to improve the Ease of Doing Business in India.
In a majority of supplies of goods, the tax incidence approved by the GST Council is much lower than the present combined indirect tax rates levied [on account of central excise duty rates/embedded central excise duty rates/service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax] by the Centre and States.