New Delhi, August 25
Two-wheelers are neither a luxurious nor sin items and so benefit a GST price revision, Finance Minister Nirmala Sitharaman stated at an trade interplay on Tuesday.
According to a press release issued by CII, which was additionally issued by the Finance Ministry’s spokesperson, Sitharaman stated a price revision proposal can be taken up by the GST Council.
Two-wheelers presently appeal to 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 stated.
“This will be taken up with the GST Council,” the statements quoted Sitharaman as saying.
Last 12 months, the nation’s largest two-wheeler maker Hero MotoCorp had urged the federal government to think about a phase-wise discount in GST on the phase, beginning with bringing bikes as much as 150 cc into the 18 per cent slab.
AMRG & Associates Senior Partner Rajat Mohan stated bikes, mopeds and cycles fitted with an auxiliary motor are taxed beneath the best bracket beneath 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 stated. PTI