IMPACT OF GST RATES TOWARDS PROFITABILITY OF AUTOMOBILE INDUSTRY IN COIMBATORE CITY

Abstract

The Automobile Industry in India is one of the most important drives of economic growth and one with high participation in global value chains .The Indian government has also identified the need for automobile industry in Indian economy and currently functioning on Automotive Mission Plan 2026.The automobile industry produces commercial vehicles, passenger’scars and three and two wheelers. Goods and Service Taxes is an indirect tax used in India on supply o f goods and services. GST have positive and negative impacts on automobiles. Automobile industry faces hardships of high ta x rates for a long period of time. GST would reduce the cost of manufacturing of cars and bikes due to the eliminition of different taxes .GST helps the manufacturers in procuring auto parts at a cheaper cost du e to an improved supply chain mechanism under GST.In this study, we analyse the Impact of GST on Automobile towards Level of Profitability by Using Questionnaire as a research instrument .The main objective of the stud y is to analyse the level of profitability due to the impact of GST on Automobiles