Hero MotoCorp CEO advocates for a GST cut on up to 125 cc two-wheelers to 18%

Hero MotoCorp has advocated for a GST reduction on two-wheelers with engines up to 125 cc. The biggest two-wheeler manufacturer in India believes that that is a strong case for GST reduction on two-wheelers with engines up to 125 cc as these cater to non-sin goods but are mobility options for masses in the country.

Currently, the two-wheelers are taxed with a 28 per cent GST rate, which is uniform to all two-wheelers irrespective of their pricing slabs and engine sizes. Hero MotoCorp has advocated for a GST rate reduction on the entry-level models with the engine size ranging up to 125 cc. The company's CEO has stated that the GST rate on motorcycles and scooters with engine sizes up to 125 cc should be reduced to 18 per cent from the current 28 per cent.

Speaking about the wishlist from the Upcoming Union Budget 2025, Hero MotoCorp's CEO Niranjan Gupta said the motorcycles and scooters with engines ranging up to 125 cc are not sin or luxury goods but provide essential mobility to the masses in India. "The entry-level two-wheelers help generate a lot of direct indirect employment. So whichever way you look at it, there is a strong case for at least two-wheelers, up to 125 cc to move down to 18 per cent GST," PTI quoted Gupta saying, who further stated, "Honestly, GST is not the subject of the Union budget. But having said that, I would say there's a strong case for GST to move down from 28 to 18 per cent especially for two-wheelers, up to 125 cc, because they are meant as vehicles for masses."

Gupta also said that the Indian government should continue on the path of long-term growth, stability and investments so capex investments, should continue to increase. "The policies should not be changed overnight. So whatever the incentive policies, subsidies, policies, there should be more long-term visibility, because then businesses can adjust to that," the Hero MotoCorp CEO said.

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