FADA seeks GST reduction on entry-level two-wheelers to 18%
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Automobile dealers' body Federation of Automobile Dealers Associations (FADA) has sought Goods and Services Tax (GST) reduction on entry-level two-wheelers to 18 per cent from 28 per cent currently. A delegation of the FADA submitted a letter to Minister of Road Transport and Highways (MoRTH) Nitin Gadkari in this regard.
FADA President Manish Raj Singhania said ‘with two-wheelers accounting for over 75 per cent of the volume and over 70 per cent of this stemming from the entry-level category, it's imperative to address the over 20 per cent decline we've observed since pre-Covid times’. To propel India towards becoming a $47 trillion economy by 2047, every segment of the domestic automobile industry must function at its zenith.
Singhania further said reducing the GST from 28 per cent to 18 per cent for entry-level two-wheelers is more than just an economic strategy; it's about empowering the common man and boosting rural mobility. He noted that while several categories within the auto sector have displayed commendable recovery post the Covid-19 pandemic, the entry-level two-wheeler sector remains notably affected. FADA believes that a GST revision would significantly alleviate the burden on potential buyers, especially in rural India, and catalyse the resurgence of this vital industry segment.
