SIAM charts path to simplified taxation at automotive taxation conference 2024

The Society of Indian Automobile Manufacturers (SIAM) organized the SIAM Conference on Automotive Taxation 2024, focusing on the theme "Evolving Taxation Landscape of the Auto Industry for Nation Building." The event addressed the role of taxation policies in supporting India's automotive sector while contributing to the nation's economic growth. It also highlighted procedural and operational challenges in the current taxation framework.  

The conference covered discussions on simplifying GST policies and procedures, aligning customs valuation with transfer pricing, and the role of digital transformation in enhancing the ease of doing business within the taxation regime.  

During the conference, Yogendra Garg, Principal Director General, Directorate General of Systems, Central Board of Indirect Taxes and Customs (CBIC), emphasized the importance of long-term planning for the industry. He encouraged the development of a five-year tax vision to create a well-structured ecosystem supporting sustainable growth aligned with the nation’s developmental goals under ‘Viksit Bharat 2047.’  

Sanjay Mangal, Principal Commissioner at CBIC, discussed recent efforts to simplify GST, reduce litigations, and streamline compliance processes. He noted the government's openness to industry recommendations aimed at further enhancing GST audits and document verification procedures across states.  

Rajesh Shukla, Chairman of SIAM's Taxation Policy Group and Head of Indirect Taxation at Tata Motors Ltd., highlighted the need for a taxation system that encourages investment in new technologies. He emphasized that simplified tax procedures and flexible policies could support emerging business models while maintaining revenue.  

Focusing on customs valuation and transfer pricing, Sanjeev Agarwal, Chairman of SIAM’s Direct Tax Group and Head of Taxation and Customs at BMW India Pvt. Ltd., pointed out the importance of leveraging technology to improve data collection. He stressed the need for logical and well-prepared industry proposals to align with the government’s data-driven approach.  

Reflecting on GST's impact, D.D. Goyal, Former Chairman of SIAM's Taxation Procedure Group and Executive Advisor – Finance at Maruti Suzuki India Ltd., described it as a transformative framework addressing pre-2017 complexities. He suggested further digitization improvements, such as mobile applications and removing digital signature requirements on invoices, to enhance efficiency.  

Pramod Kumar, Executive Vice President of the Goods and Services Tax Network, discussed the collaborative efforts between the central and state governments in implementing GST. He highlighted the unanimous decisions within the GST Council and the success of the system’s centralized, scalable platform in improving compliance and efficiency.  

The event featured speakers such as Rajesh Menon, Director General of SIAM; Sanjay Seth, Co-Chair of SIAM Direct Tax Group and Head of Taxation at Hero MotoCorp Ltd.; Anil Sahani, Co-Chair of SIAM's Taxation Procedure Group and Vice President (Finance), Head of Tax at Maruti Suzuki India Ltd.; and Veeresh Prasad, Co-Chair of SIAM's Taxation Policy Group and General Manager (Indirect Taxation & Impex) at Toyota Kirloskar Motor Pvt. Ltd.  

The conference served as a platform for industry leaders and policymakers to share insights on aligning taxation policies with the objectives of sustainability, innovation, and operational efficiency. SIAM reiterated its goal of fostering collaboration between the automotive industry and the government to create a supportive taxation framework for the sector's growth and development.