Automobile industry is the fastest growing sector in India having clear correlation with the reforms related policies influencing domestic demand pattern as well as trade. The Automobile sector in India is one of the largest in the world. The industry contribution to country's Gross Domestic Product (GDP) accounts for 7.1%.India is one of the largest tractor manufacturer in the world, second largest two-wheeler manufacturer, second largest bus manufacturer, fifth largest heavy truck manufacturer, sixth largest car manufacturer and eight largest commercial vehicle manufacturers. Under Automotive Mission Plan 2026,the goal is to make Indian Automotive Industry among top three in manufacturing, engineeringand exports of vehicles & components in the world and expected to accounts for 12 per cent of India GDP during the next decade.The industry has attracted Foreign Direct Investment (FDI) worth US$ 17.40 billion during the d April 2000 to June 2017, according to data released by Department of Industrial Policy and Promotion (DIPP). The Two Wheelers segment is the leader of the Indian Automobile market with 80% market share due to a growing middle class and a young population and the Passenger Vehicle (PV) segment holds 14 per cent market share. India is also a prominent auto exporter and automobiles companies are also exploring the rural markets which will also boost the growth of the sector.in near future. With the introduction of Goods and Services Tax, where all the taxes are subsumed into one, it becomes necessary to foresee the impact of GST on this industry. In this paper an attempt has been made to emphasize the impact of GST on automobile industry in India.