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IRF Proposes GST Exemption on Helmets to Promote Road Safety

IRF Suggests GST Exemption on Helmets

The International Road Federation (IRF) has presented a proposal to the government and suggested that the goods and services tax (GST) on helmets will encourage their usage, as per the reports. The IRF is quite conscious regarding the increasing number of fatalities among two-wheeler riders due to the lack of helmet usage.

The authority has requested that the GST should be removed on helmets. They proposed in the view of that such a decision would significantly enhance road safety. Presently, 18% GST is levied on helmets in India, which is a significant amount.

According to a recent report released by the Ministry of Road Transport and Highways (MoRTH), India witnessed over 461,000 road accidents in 2022, resulting in 168,000 deaths. Shockingly, approximately 50,029 of these fatalities involved two-wheeler riders not wearing helmets. Disturbingly, more than 70% of the casualties were individuals riding two-wheelers.

Reports say that countries where two-wheelers outsell four-wheelers typically have lower helmet usage rates. India has laws to prevent deaths due to road accidents concerning two-wheelers. Currently, it is mandatory in India to wear helmets while riding. However, violations of this rule happen every day throughout the country, not only in small towns but also in major cities as well.

Additionally, the report highlighted that many two-wheeler riders are bound to choose the cheapest helmets available because of the 18% GST additional price, which makes a piece costlier. Cheap helmets, unfortunately, may not meet the necessary safety standards. The President of IRF stressed the significance of removing GST on helmets, as it would make high-quality helmets more affordable for the general public and discourage the purchase of low-quality or substandard options.

Section 129 of the Central Motor Vehicle Act, of 1988, outlines that it is mandatory for all two-wheeler riders to wear helmets. Not adhering to this rule can result in penalties of up to Rs 1,000 in Delhi, and repeated offences may lead to a three-month suspension of the rider’s driving license.

Recommended: GST Should Not be Levied on Helmets Being Life-saving Equipment

Delhi, the capital city, ranks among the prominent areas with significant non-compliance regarding helmet usage. Data from Delhi Police, as cited in the report, indicates that over 100,000 challans were issued to two-wheeler riders within the first four months of the current calendar year.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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