New Delhi: Finance Minister Nirmala Sitharaman said on Tuesday that the two wheeler is neither a luxury item nor does it fall into the category of perishable goods. Therefore, a case for amendment in the Goods and Services Tax (GST) rate is made on this. In the meeting held with the Confederation of Indian Industry (CII), Sitharaman said that the matter of amending the GST rate on two-wheelers will be considered in the meeting of the GST Council. This information has been given in the statement issued by CII.
It was also released later by a finance ministry spokesperson. Two-wheelers currently attract GST at the rate of 28 per cent. “On the question of reducing the GST rate on two-wheelers, Sitharaman assured that this is a good suggestion in the true sense as this category of vehicle neither falls in the category of enjoyment nor is it detrimental,” the statement said. It falls in the category of the commodity, so a case for rate modification is made in it. This issue will be placed before the GST Council. “
Last year, the country’s largest two-wheeler manufacturer, Hero MotoCorp, urged the government to reduce the GST rate in the two-wheeler category in a phased manner. It can be started by bringing a 150 cc motorcycle in the 18 per cent slab of GST. Rajat Mohan, Senior Partner, AMRG & Associates said that GST is levied at the highest rate of 28% on motorcycles, mopeds and motorcycles. Two-wheelers have become the basic need for millions of middle class families of the country today. But in the case of GST, it has also been kept in the category of harmful items like tobacco, cigars, pistols.
