On Wednesday, the Federation of Automobile Dealers Associations (FADA), the apex national body of the automobile retail industry requested to reduce GST on entry-level two-wheelers from 28% to 18%.
A letter was submitted by a delegation of the body to Nitin Gadkari, Minister of Road Transport and Highways (MoRTH) regarding the request.
GST rate reduction on entry-level two-wheelers has been requested by FADA, especially for the 100-125 CC segment.
FADA president, Manish Raj Singhania said that two-wheeler makes the 75 per cent of the volume, and out of this 70 per cent is dominated by the entry-level segment. So, it is crucial to point out that over 20 per cent reduction has been observed since the pandemic.
To push the country forward to make it a USD 47$ Trillion economy by 2047, the automobile industry as a whole must go fast, he said.
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Further, he stated that in the entry-level two-wheelers segment, reducing the GST rate from 28% to 18% will be the best strategy to boost the economy. It will empower the common man and fuel rural mobility.
Post-COVID-19, many segments of the auto industry have shown appreciable recovery, yet the entry-level two-wheeler sector still continues to suffer, he said.
FADA expects that this GST implementation would remarkably lessen the burden on potential buyers, especially in rural India. Additionally, the implication would generate a revival for this vast industry segment, added Singhania.
FADA covers more than 15,000 automobile dealers having 26,500 dealerships throughout the nation
