SIAM Tax Conference Focuses on AI, GST Reforms and Future Tax Framework for Auto Industry

The Society of Indian Automobile Manufacturers (SIAM) convened the third edition of its Automotive Taxation Conference, bringing together industry executives, tax professionals, and policymakers to discuss reforms to modernise India's automotive taxation framework. The conference focused on policy reforms, digital transformation, and global taxation trends, alongside topics such as transfer pricing, Pillar Two regulations, TDS reforms, dispute resolution, and the growing role of artificial intelligence in tax administration.

Speaking at the event, SIAM Direct Tax Group Chairman and BMW India Head of Taxation & Customs Sanjeev Agarwal said taxation is increasingly becoming a strategic business function rather than being limited to compliance. He noted that tax policies should support investment decisions, supply chain resilience, governance and competitiveness, while emphasising the need for seamless compliance and agile policymaking.

Tax Emerges as a Strategic Business Function Amid EV, SDV Shift

Vivek Johri, Senior Advisor at KPMG India, said the rapid transformation of the automotive industry presents an opportunity to align India's tax framework with emerging technologies and evolving business models. He added that closer collaboration between industry and the government could help create a more streamlined tax environment.

BMW Group India Chief Financial Officer Carsten Lammers said software, artificial intelligence, connectivity and sustainability are reshaping the automotive sector, making tax functions increasingly important in business decision-making. He also pointed to India's manufacturing capabilities and expanding consumer market as factors supporting future growth.

Maruti Suzuki Pushes for 'One Nation, One Governance' Under GST 2.0

Maruti Suzuki India Chief Financial Officer Arnab Roy called for building on the Goods and Services Tax framework by moving towards what he described as "One Nation, One Governance". He said seamless input tax credit, faster dispute resolution, greater tax certainty and continued government-industry engagement would be important for improving the ease of doing business.

AI Reshaping Tax Risk Detection and Compliance in Auto Sector

The conference also examined the impact of software-defined vehicles, electric vehicles and increasingly data-driven regulations on taxation. Veeresh Prasad, Co-Chairman of the SIAM Taxation Policy Group and General Manager (Indirect Taxation & Impex) at Toyota Kirloskar Motor, said artificial intelligence is shifting tax functions towards identifying risks, prioritising transactions requiring attention and preventing disputes.

On tax administration, Anil Sahani, Co-Chairman of the SIAM Taxation Procedure Group and Vice President (Finance), Head of Tax at Maruti Suzuki India, said the industry has moved towards a system focused on voluntary compliance and greater certainty. He added that future reforms should make audits more collaborative while limiting litigation to cases where it is necessary.

Global Tax Alignment and Industry-Government Collaboration Ahead

Meanwhile, Sanjay Seth, Co-Chairman of the SIAM Direct Tax Group and Head of Taxation at Hero MotoCorp, said both domestic and international tax systems are evolving to curb tax evasion while reducing compliance burdens for legitimate taxpayers. He noted that the growth of the automotive industry has also influenced how companies manage pricing and transactions across global operations.

The event also featured discussions by representatives from organisations including the Income Tax Department, Tata Motors, Bajaj Auto, JSW MG Motor, Mahindra & Mahindra, Deloitte India, PwC India, KPMG India and ClearTax. SIAM said the conference concluded with an industry commitment to continue engaging with the government on developing a globally competitive taxation framework for the sector.