Streamlining Auto Industry Taxation: SIAM Focusing on the evolving taxation landscape of the auto industry, experts and policymakers discussed key issues, including GST simplification, customs valuation, transfer pricing alignment, and the adoption of digital transformation for ease of doing business.
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Focusing on the evolving taxation landscape of the auto industry, experts and policymakers discussed key issues, including GST simplification, customs valuation, transfer pricing alignment, and the adoption of digital transformation for ease of doing business. Yogendra Garg, principal director general of systems at the Central Board of Indirect Taxes and Customs (CBIC), highlighted the automotive industry's significant growth. "The government is aligning taxation systems to support this vital sector," he stated. "In line with the growing government-stakeholder consultation in India, the Auto Industry must create a long-term, 5-year tax vision. This vision should outline the taxation ecosystem we aim to build and provide a roadmap to achieve it."
The Society of Indian Automobile Manufacturers (SIAM) hosted the SIAM Conference on Automotive Taxation 2024, centered on the theme "Evolving Taxation Landscape of the Auto Industry for Nation Building." The conference underscored the pivotal role of taxation policies in bolstering India's automotive sector while promoting economic development.
Simplifying GST
Discussing the opportunities to streamline GST, Sanjay Mangal, principal commissioner at CBIC, emphasized the government's dedication to reducing complexity. "Over the past 4-5 years, GST has undergone numerous changes, demonstrating the government's commitment to simplifying policies and reducing litigations. We welcome industry recommendations to refine GST audits, document verification, and compliance processes across jurisdictions," he said.
D.D. Goyal, executive advisor – finance at Maruti Suzuki, lauded GST's transformative impact. "Moving forward, initiatives like a dedicated mobile application or the removal of digital signature requirements on invoices could further streamline operations," he suggested.
Flexible tax policies
The conference also addressed the need for a tax ecosystem encouraging investment in emerging technologies. Rajesh Shukla, chairman of the SIAM Taxation Policy Group and head of indirect taxation at Tata Motors, remarked, "Simplified procedures will ease business operations and support innovative business models. Additionally, exploring international taxation and integrating new technologies into policymaking can drive economic growth sustainably."
Highlighting the role of digital transformation, Pramod Kumar, executive vice president of the Goods and Services Tax Network (GSTN), noted the unified efforts of the Centre and states in GST implementation. "Our scalable, high-concurrency platform has revolutionized compliance and efficiency. Industry feedback continues to shape our approach, ensuring the system evolves in tandem with industry needs," he explained.
The discussions extended to customs valuation and transfer pricing. Sanjeev Agarwal, chairman of SIAM direct tax group and head of taxation at BMW India, called for leveraging data capabilities. "Government authorities are ahead in data-driven approaches, emphasizing the industry's need to improve data collection and propose logical, well-structured recommendations," he advised.
