GST: TVS Motor joins Hero MotoCorp to seek reduction in rate on two-wheelers
GST: TVS Motor joins Hero MotoCorp to seek reduction in rate on two-wheelers
Jan 9, 2019

TVS Motor Company on Tuesday joined other two-wheeler companies, including Hero MotoCorp, in seeking reduction of the goods and services tax (GST) rate on two-wheelers, pointing out that the mass commuting segment should not be treated on the lines of luxury goods. Raising concerns over the high GST rate, Venu Srinivasan, chairman, TVS Motor, said: “Rising urbanisation, increasing purchasing power and the enhanced need for connectivity particularly in the mid-sized and smaller cities across India have fuelled the two-wheeler revolution for personal mobility.”

“Given the importance of the two-wheeler segment as an item for mass mobility, the GST rates for two-wheelers undoubtedly needs to be reconsidered. It certainly cannot be benchmarked against the prevalent GST rates for luxury goods at 28%, especially given the current state of inconsistencies with the integrated multi-modal public transport systems across India,” Srinivasan added.

He also pointed out, with the new safety norms and BS VI integration also around the corner, two-wheeler prices will increase further. “It has become even more imperative to relook the GST rates for two-wheelers to ensure social inclusion that is sustainable in the longer run,” he said in a release here.

Source :  Financial Express

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