The Society of Indian Automobile Manufacturers (SIAM) hosted the SIAM Conference on Automotive Taxation 2024 under the theme, “Evolving Taxation Landscape of the Auto Industry for Nation Building.” The event underscored the pivotal role of taxation policies in fostering the growth of India’s automotive sector while driving the nation’s economic progress. It also addressed various procedural and operational challenges within the taxation framework.
Key discussions at the conference focused on opportunities to further simplify GST, addressing policy and procedural issues, aligning customs valuation with transfer pricing, and leveraging digital transformation to enhance ease of doing business within the taxation regime.
On this occasion, Mr. Yogendra Garg, Pr. Director General, Director General of Systems, Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance said, “The automobile industry has grown significantly, with the government aligning taxation systems to support this vital sector. 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 nature of the taxation ecosystem we aim to build and then create a roadmap to work toward achieving it. Committed to ‘Viksit Bharat’ by 2047, we seek to address challenges and foster growth by envisioning the direct and indirect tax ecosystem, thus ensuring sustainable development.”
Speaking on opportunities to further simplify GST, Mr. Sanjay Mangal, Principal Commissioner, Central Board of Indirect Taxes and Customs (CBIC) said, “In the past 4-5 years, GST has undergone multiple changes, emphasizing the government’s commitment to simplifying policies, reducing litigations, and fostering ease of doing business. We are actively streamlining compliances and have begun to bring more clarity and strengthen these processes. Additionally, the government views the auto sector favourably, we encourage industry recommendations to further streamline GST audits and trial balances, aiming to enhance document verification processes across state jurisdictions.”
Mr. Rajesh Shukla, Chairman, SIAM Taxation Policy Group and Head – Indirect Taxation, Tata Motors Ltd. added, “There is a need to create a Tax Eco system that encourages the industry to invest in new technologies, especially as the Auto Industry undergoes a phase of rapid technology transition. Moving forward, simplifying tax procedures will ease business operations, and flexible tax policies can support emerging business models without compromising revenue. We also aim to explore the simplification of international taxation and adoption of new technologies in tax policy-making, fostering innovation and driving sustainable economic growth.”
Speaking on customs valuation and transfer pricing, Mr. Sanjeev Agarwal, Chairman, SIAM Direct Tax Group and Head – Taxation & Customs, BMW India Pvt. Ltd. said, “Government authorities are significantly ahead of the industry in terms of data capabilities, often approaching us with pertinent questions that underline the need for the industry to leverage technology to enhance our data collection. Industry has to make logical and reasonable proposals, as the government is genuinely interested in understanding and considering industry recommendations.”
Mr. D.D. Goyal, Former Chairman, SIAM Taxation Procedure Group and Executive Advisor – Finance, Maruti Suzuki India Ltd. said, “GST has been a transformative expressway built by the government, streamlining complexities present before 2017 and resolving issues related to transit vehicles, used car taxation, and extended warranties. As we move towards complete digitization, further enhancements like a dedicated mobile application or waiving off digital signatures on invoices could revolutionize our efficiency. Additionally, guidance on managing demo vehicles and vehicles used for testing can further smoothen our journey on this new tax expressway.”
Speaking on digital transformation, Mr. Pramod Kumar, Executive Vice President, Goods and Services Tax Network said, “Since the inception of GST, the Centre and the states have exhibited commitment and cooperation, embodying true federalism to ensure its success. Over the past seven years, virtually all decisions within the GST Council have been unanimous, demonstrating a collective readiness to address and resolve issues promptly post-rollout. The transformative digitalization of the GST system—centralized on a single, high-concurrency, scalable, and reliable platform—has been pivotal. We remain focused on enhancing the efficiency and compliance of the GST framework, always considering the industry’s feedback to refine our approach.”
The sessions included esteemed industry leaders and experts, including Mr. Rajesh Menon, Director General, SIAM; Mr. Sanjay Seth, Co-Chair, SIAM Direct Tax Group and Head – Taxation, Hero MotoCorp Ltd.; Mr. Anil Sahani, Co-Chair, SIAM Taxation Procedure Group and Vice President (Finance), Head – Tax, Maruti Suzuki India Ltd.; Mr. Veeresh Prasad, Co-Chair, SIAM Taxation Policy Group and General Manager (Indirect Taxation & Impex), Toyota Kirloskar Motor Pvt. Ltd., among others.
The distinguished speakers shared valuable insights on aligning taxation policies with the automotive industry’s objectives of sustainability, innovation, and ease of doing business. The conference reinforced SIAM’s commitment to fostering collaboration between the automotive industry and the government to develop a taxation landscape that supports growth, innovation, and sustainability.
