Guwahati: The prices of two-wheelers like bikes and mopeds are likely to be reduced by Rs 10,000; this will become possible if the central government reduces the GST rate on two-wheelers from 28 percent to 18 percent, said Rajiv Bajaj, managing director of Bajaj Auto.
According to sources, the central government is considering reducing GST on two-wheelers. In a meeting with the CIA, Union Finance Minister Nirmala Sitharaman also hinted at a reduction in rates.
According to Union Finance Minister Nirmala Sitharaman, the GST Council is likely to review the tax on two-wheelers. The auto industry has been in a state of turmoil for the past year, with the onset of the pandemic. At the request of the auto industry, the GST Council meeting will discuss reducing the GST rate, Sitharaman said in a meeting with the CII.
"Two-wheelers do not fall into the category of luxury items. Therefore, there is a need to review the GST rates levied on them. The upcoming GST meeting is likely to discuss the tariffs on two-wheelers", said Nirmala Sitharaman, Union Finance Minister.
According to Rajiv Bajaj, the auto industry has been facing a number of problems over the past year. Therefore, the industry needs to be revived by reducing the rates of GST. The reduction in GST rates is also likely to bring relief to consumers and the automotive industry.
Shares of auto companies rose after Nirmala Sitharaman clarified on Wednesday that a two-wheeler is not a luxury, nor is it a sin. TVS Motor Company rose 6.96 percent, Hero MotoCorp 5.17 percent and Bajaj Auto 4.22 percent. It was followed by Tata Motors at 3.89 percent, Eicher Motors at 3 percent, Mahindra & Mahindra at 2.60 percent, and Ashok Leyland at 1.35 percent.