The Society of Indian Automobile Manufacturers (SIAM) hosted the 2024 SIAM Conference on Automotive Taxation in New Delhi, addressing critical taxation issues and opportunities for India’s automotive industry. Themed “Evolving Taxation Landscape of the Auto Industry for Nation Building,” the event brought together government officials, industry leaders, and taxation experts to explore ways to streamline tax structures, foster innovation, and drive sustainable growth in the sector.
The conference focused on key topics, including simplifying Goods and Services Tax (GST), aligning customs valuation with transfer pricing, leveraging digital transformation for compliance, and promoting ease of doing business. Discussions centred on creating a long-term vision for the industry’s taxation ecosystem, particularly as it transitions to new technologies and sustainable practices.
Yogendra Garg, Principal Director General of the Central Board of Indirect Taxes and Customs (CBIC), emphasised the need for a five-year tax vision to guide the sector’s evolution. He highlighted the government’s focus on aligning taxation policies to support the industry’s growth while contributing to India’s “Viksit Bharat” vision by 2047. He noted that the government seeks to address challenges collaboratively, fostering a stable and supportive tax framework.
Sanjay Mangal, Principal Commissioner, CBIC, underscored the progress made in GST reforms over the past five years, which have reduced litigation and simplified compliance processes. He stressed the government’s receptiveness to industry recommendations, particularly in streamlining GST audits and enhancing document verification across jurisdictions. These measures aim to improve efficiency and foster transparency in tax procedures.
Rajesh Shukla, Chairman of the SIAM Taxation Policy Group, called for a taxation ecosystem that encourages investment in new technologies while accommodating emerging business models. He emphasised the need for simplified tax procedures to reduce operational complexity and promote sustainable economic growth. Shukla also highlighted the importance of incorporating digital tools into tax policy-making to enhance efficiency and foster innovation.
Addressing customs valuation and transfer pricing, Sanjeev Agarwal, Chairman of the SIAM Direct Tax Group, noted the growing capabilities of government authorities in data analysis and urged the industry to adopt similar technologies for better compliance. He stressed the importance of logical and evidence-based proposals to ensure effective collaboration with policymakers.
D D Goyal, Former Chairman of the SIAM Taxation Procedure Group, lauded the transformative impact of GST, describing it as a 'taxation expressway' that has streamlined processes since its implementation in 2017. He suggested further enhancements, such as mobile applications and simplified procedures for demo and testing vehicles, to improve efficiency in the automotive sector.
Pramod Kumar, Executive Vice President of the Goods and Services Tax Network, highlighted the success of GST’s digital transformation, which operates on a centralised, scalable platform. He praised the collaborative spirit of the GST Council, where decisions are often unanimous, and reaffirmed the government’s commitment to refining the GST framework based on industry feedback.
The conference featured industry leaders, including Rajesh Menon, Director General of SIAM, and representatives from major automotive companies such as Hero MotoCorp, Maruti Suzuki, and Toyota Kirloskar Motor. Speakers emphasised the need for collaboration between the government and the industry to align taxation policies with sustainability, innovation, and ease of doing business.
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