Under the Pre GST regime, central and state government have levied multiple taxes on the same supply chain. There was cascading effect of taxes, as taxes levied by the central government, were not allowed as set off against the taxes levied by state government. In the view of the above difficulties, the certain taxes have been subsumed in a one tax called the goods and service tax (GST). The Automobile sector in India is one of the greatest effective and developing manufacturing industry after liberalization. The industry has potential to grow and become a major contributor for the economic expansion and employment creation. The Government of India has also known the implication of Automobile industry in the Indian economy and is presently occupied on Automotive Mission 2026 to be at equivalence with the greatest nation of the world. India is also a protuberant auto exporter and automobiles companies also discovering the rural markets which will also boost the progress of the sector in near future. By the outline of GST, where all the taxes are subsumed into one, it becomes necessary to foresee the impact of GST on this industry. This paper covers the overall impact of GST on Automobile sector in India.

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Keywords: Goods and Service Tax, Automobile sector, Taxation, Indian Economy.