Not right time to seek GST rate cut on automobiles: RC Bhargava

"At the moment, as we stand today, at least for the next month or two months the production volume of all automobile makers is going to be very low. At this point a GST cut won't make a sense," MSI Chairman R C Bhargava told reporters in video conference.

New Delhi: The country's largest carmaker Maruti Suzuki India (MSI) on Wednesday said a GST rate cut on vehicles does not make sense right now with auto industry production levels at record low level.

The company, which has around 54 per cent market share in the domestic passenger vehicle segment, said that rate cut if any has to be considered at the right time.

"At the moment, as we stand today, at least for the next month or two months the production volume of all automobile makers is going to be very low. At this point a GST cut won't make a sense," MSI Chairman R C Bhargava told reporters in video conference.

He was responding to a query whether it was the right time to seek GST rate cut for the industry which has been impacted by the coronavirus pandemic.

Bhargava said the GST rate cut will become relevant really when production can actually be increased to higher levels and where the supply is going to be in excess of demand.

"Then only it will make sense. So the government has to look at it, the industry has to look at it as to what is the relevant time to do it. Certainly not immediately," he noted.

(PTI Report)