The Federation of Car Sellers Associations (FADA) has urged the GST council to scale back GST fee on two-wheelers. The auto physique is demanding the GST charges to be diminished from the present 28% to 18% instantly.
In an announcement, FADA mentioned that the intervention is aimed toward making two-wheelers extra reasonably priced, reviving demand and reinvigorating the trade which has seen a big stoop in gross sales over the previous few years.
FADA says that it has submitted its request for GST fee discount on two-wheelers to Finance Minister, chair of the GST Council, all GST Council members, the Ministry of Heavy Industries, which supervises the car sector and the Ministry of Street Transport & Highways.
Costs of two-wheelers have elevated considerably over the previous years. Rising value of uncooked supplies, stricter emission norms and better taxes and levies are a number of the doable causes behind the worth rise that FADA says has impacted the affordability for customers throughout the nation.
As an example, Honda Activa’s value has elevated from ₹52,000 in 2016 to ₹88,000 in 2023. Equally, Bajaj Pulsar that could possibly be bought at ₹72,000 in 2016 now prices ₹1,50,000. FADA says that the continual rise in two-wheeler costs has consequently led to a decline in gross sales.
Two-wheelers accounted for 78% of the overall car gross sales within the nation in 2016. As a consequence of growing costs, the contribution has decreased to 72% in 2023, the car physique emphasizes.
FADA believes {that a} discount within the GST fee will deal with a number of important points dealing with the trade, together with rural misery, the transition from BS-4 to BS-6 emission norms and the sharp enhance in two-wheeler costs.
“Reducing the GST fee will improve the competitiveness of two-wheelers in comparison with different transportation modes, thereby growing gross sales and income for the trade,” it says.
“Furthermore, the discount in GST on two-wheelers may also positively affect the setting, as they’re extra fuel-efficient and emit fewer pollution in comparison with different transportation modes,” the car physique added.