September 20, 2020

Two-wheelers neither luxurious nor sin items, advantage GST charge revision: FM

Two-wheelers are neither a luxurious nor sin items and so advantage a GST charge revision, Finance Minister Nirmala Sitharaman mentioned at an trade interplay on Tuesday. In keeping with an announcement issued by CII, which was additionally issued by the finance ministry’s spokesperson, Sitharaman mentioned a charge revision proposal could be taken up by the GST Council.

Two-wheelers at the moment appeal to 28 per cent GST.

“Responding to a query concerning the want for decreasing GST charges on two-wheelers, she assured that this was certainly a very good suggestion as this class is neither a luxurious nor a sin good and therefore deserves a charge revision,” the statements mentioned.

This “can be taken up with the GST Council”, the statements quoted Sitharaman as saying.

Final yr, the nation’s largest two-wheeler maker Hero MotoCorp had urged the federal government to contemplate a phase-wise discount in GST on the phase, beginning with bringing bikes as much as 150 cc into the 18 per cent slab.

AMRG & Associates Senior Companion Rajat Mohan mentioned bikes, mopeds and cycles fitted with an auxiliary motor are taxed underneath the best bracket underneath GST — 28 per cent.

“Two-wheeler which is a fundamental necessity for transportation of tens of millions of medium-income group households in India is handled at par with sin items like tobacco, cigars, revolvers, and pistols and luxurious items like racing automobiles, private use plane, yachts, sports activities vessels, and rowing boats,” he mentioned.