2-Wheeler GST rate reduction will be taken up by the GST Council probably in one of its next meetings. If revised, 2-wheelers will become cheaper…
India moved onto the Goods & Services Tax (GST) regime few years back. It was meant to simplify the taxation in the country and was promoted as ‘One Nation One Tax’.
There are broadly four slabs that have been divided based on the type of goods. The top slab – of 28 percent tax – has been defined for luxury or sin goods. Surprisingly, 2-wheelers, which have become a basic necessity for an average India, are also taxed at a whopping 28 percent which means that the Government categorized them as ‘sin’ goods till now.
There have been frequent demands from most of the top auto makers about reduction in taxes in 2-wheelers including Hero MotoCorp, Bajaj and others.
Finally, Nirmala Sitharaman, India’s current Finance Minister, has accepted that two-wheelers are neither luxury nor sin goods and deserve rate reduction. According to a statement released by the Commerce and Industry Ministry (CII), a rate revision proposal would be taken up by the GST Council (team which decides taxes on different items in the country) soon.
If the rate reduction does go through, two-wheelers could be taxed 10 percent lesser, at 18 percent, which will provide makers a lot of leeway to reduce already spiraling prices due to various government regulations that have come into effect recently. This will directly impact the retail prices and motorcycles and scooters could become significantly cheaper…
Source – Economic Times