Chennai, Sep 2 (IANS): Finance Minister Nirmala Sitharaman on Sunday said that the GST Council will take the final call on reducing the tax rate on motor vehicles.

Speaking to reporters here, she said that the government is addressing the issues of the automotive segment on the backdrop of the recent slowdown in sales.

"One of the suggestion was the reduction of GST rate for the automobile sector, that of course... will have to go to the (GST) council, but otherwise I have been addressing issues related to BS-IV, inventory...," she added.

The council is likely to meet in Goa on September 20.

Sitharaman said that the sector was facing problems due to several factors, including transition from BS-IV to BS-VI emission norms and prospective buyers were delaying their decision.

To help revive the auto sector, the Minister on August 23 had announced the government departments would be allowed to buy new vehicles, automobiles purchased till March 31, 2020 would avail the benefit of additional depreciation of 15 per cent, with total depreciation up to 30 per cent, and BS-IV vehicles bought till March 31, 2020 would remain operational for their entire registration period.