FADA calls for reduction in GST rates to 18% for entry-level two-wheelers
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The Federation of Automobile Dealers Associations (FADA) asked for the reduction in Goods and Services Tax (GST) rates from 28 per cent to 18 per cent for entry-level two-wheelers that is the 100cc and 125cc segment, and said the segment has not recovered from the impact of COVID-19 pandemic.
FADA President Manish Raj Singhania said in the ongoing fiscal so far, while the retail sales of total vehicles have grown by around 7 per cent, the entry-level two-wheeler segment is yet to witness the robust growth seen. He said ‘although the two-wheelers segment experienced year-on-year growth, we are still 20 per cent behind the pre-COVID levels.’
According to FADA data, in the April to August period of FY24, two-wheeler sales were at 65,15,914 units as against 62,35,642 units, a growth of 4.49 per cent. Total vehicle sales across categories in the April-August period of the ongoing fiscal stood at 91,97,045 units, as compared to 86,15,337 units in the corresponding period last fiscal, a growth of 6.75 per cent.
