The Federation of Automobile Dealers Associations (FADA) has urged the government to reduce the GST rate on entry-level two-wheelers from 28 percent to 18 percent.The association met with Road Transport Minister Nitin Gadkari on Wednesday and submitted a letter with this request. FADA President Manish Raj Singhania said that the GST cut would help revive the two-wheeler segment, which accounts for over 75 percent of the automobile volume in India.
Singhania added that most of the two-wheeler sales come from the entry-level category, which has seen a decline of over 20 percent since the Covid-19 pandemic.
Singhania said that lowering the GST rate would benefit potential buyers, especially in rural India, and boost rural mobility. He said that this would also contribute to India’s goal of becoming a USD 47 trillion economy by 2047.
FADA represents over 15,000 automobile dealers with 26,500 dealerships across the country.
Source: CNBC TV 18
https://www.cnbctv18.com/auto/auto-dealers-body-fada-seeks-gst-cut-on-entry-level-two-wheelers-17490471.htm
https://www.cnbctv18.com/auto/auto-dealers-body-fada-seeks-gst-cut-on-entry-level-two-wheelers-17490471.htm
