- Two-wheelers currently attract 28% GST
- GST revision to be taken up with the GST Council
- Likely to boost sales further
Buying motorcycles and scooters may get more affordable as the government plans to reduce the GST rate on two-wheelers. The development was announced by Confederation of Indian Industry in a press statement.
Responding to a question about the need for lowering GST rates on two-wheelers, Finance Minister Nirmala Sitharaman recently said that the category is neither a luxury nor a sin good and hence it merits a rate revision. The tax revision will be taken up with the GST Council. The announcement comes at a crucial time as a lower GST rate will reduce the on-road prices of the two-wheelers which will further boost sales during the high-demand festive season.
The current GST rate for two-wheelers is 28%. While the GST on two-wheelers may receive a revision, there is no update about the revised rate. Last year, the government had reduced the GST on electric two-wheelers from 12 per cent to 5 per cent.
