Display GST Rate Cuts with PM Modi’s Photo
“ऑटो शोरूम में मोदी सरकार के जीएसटी कटौती पोस्टर अनिवार्य”
The Ministry of Heavy Industries has issued a new directive to automobile dealerships across India, asking them to prominently display posters highlighting the recent GST rate cuts on vehicles. These posters will also feature a photograph of Prime Minister Narendra Modi, underlining the government’s role in passing on benefits to consumers.
Why This Move Matters
The Indian auto industry has long been burdened by high taxation, making vehicles expensive for the average buyer. With the new GST 2.0 structure:
Small cars (under 4 meters, 1200 cc petrol/1500 cc diesel) now attract 18% GST instead of nearly 30%.
Bigger cars & SUVs have seen their effective tax rate reduced to 40% from about 50%, thanks to the removal of the compensation cess.
These changes make vehicles more affordable while boosting consumer confidence during the festive season.
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Government’s Objective
According to the Ministry, the aim is two-fold:
Transparency – Consumers should see the exact difference in old vs new pricing.
Awareness – Posters in showrooms ensure that the public recognizes GST reforms as a government-led consumer benefit initiative.
Industry & Consumer Impact
Automakers including Maruti Suzuki, Hyundai, Tata, and Mahindra have already slashed ex-showroom prices to reflect the new rates. For buyers, this could mean savings of ₹20,000 to over ₹1 lakh depending on the model.
Dealers, however, have raised concerns about the cost of printing and distributing these posters—estimated to run into crores of rupees nationwide. Additionally, questions remain on how older stock (purchased before the tax cuts) will be displayed in the new format.
Political Reaction: Congress Criticises BJP
The move has not gone unnoticed in the political arena. The Congress party strongly criticized the directive, stating:
“Modi has made it mandatory for car companies to display his photo along with the old and new price list. We request all companies to put Modi ji’s photo on the left side, who was responsible for implementing the old, high GST rates.”
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In a satirical jab, Congress leaders even remarked that footwear and undergarment companies might start re-planning to put Modi’s photos on their products, hinting at political overreach and branding in everyday consumer goods.
This sharp political exchange underscores how a tax reform measure has quickly transformed into a battle of narratives between the ruling BJP and the opposition Congress.
Conclusion
The GST rate cut is undeniably a big relief for India’s auto sector and consumers alike. However, the mandatory poster directive adds a new layer of political controversy. For car buyers, the clear win is reduced prices, but for the industry, compliance and cost challenges still remain. With political parties sparring over Modi’s photo on posters, the debate is likely to intensify as India moves closer to election season.
