GST on two-wheelers may be reduced as Nirmala Sitharaman hints at revision

Two-wheelers are neither a luxury nor sin goods and so merit a GST rate revision, Finance Minister Nirmala Sitharaman said at an industry interaction on Tuesday.

File photo used for representational purpose. (HT)
File photo used for representational purpose.

According to a statement issued by CII, which was also issued by the finance ministry's spokesperson, Sitharaman said a rate revision proposal would be taken up by the GST Council.

Two-wheelers currently attract 28 per cent GST.

"Responding to a question about the need for lowering GST rates on two-wheelers, she assured that this was indeed a good suggestion as this category is neither a luxury nor a sin good and hence merits a rate revision," the statements said.

Also check these Bikes

Find more Bikes
Emflux Motors Emflux Two (HT Auto photo)
UPCOMING
₹4 - 4.5 Lakhs* *Expected Price
View Details
Cfmoto 400gt (HT Auto photo)
UPCOMING
₹4 Lakhs *Expected Price
View Details
Kawasaki Z400 (HT Auto photo)
UPCOMING
₹4 Lakhs *Expected Price
View Details
Kawasaki Klx 140 (HT Auto photo)
₹4.07 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Bsa Gold Star (HT Auto photo)
UPCOMING
₹4.5 - 5 Lakhs* *Expected Price
View Details

This "will be taken up with the GST Council", the statements quoted Sitharaman as saying.

Last year, the country's largest two-wheeler maker Hero MotoCorp had urged the government to consider a phase-wise reduction in GST on the segment, starting with bringing bikes up to 150 cc into the 18 per cent slab.

AMRG & Associates Senior Partner Rajat Mohan said motorcycles, mopeds and cycles fitted with an auxiliary motor are taxed under the highest bracket under GST -- 28 per cent.

"Two-wheeler which is a basic necessity for transportation of millions of medium-income group households in India is treated at par with sin goods like tobacco, cigars, revolvers, and pistols and luxury goods like racing cars, personal use aircraft, yachts, sports vessels, and rowing boats," he said.

First Published Date: 26 Aug 2020, 08:00 AM IST
Recommended for you
View all
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
13% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 349 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
14% OFF
Jopasu Car Duster
Rs. 749 Rs. 869

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city