Auto dealers urge government to reduce GST on entry-level bikes to 18%

Reiterating its demand, automobile dealers on Thursday urged the government to reduce GST rates on entry-level two-wheelers to 18 per cent, saying the segment has not recovered from the impact of Covid-19 pandemic.

“Although the two-wheelers segment experienced year-on-year (YoY) growth, we are still 20 per cent behind the pre-Covid levels.

Two -wheeler industry is an important part of the mobility ecosystem, and hence we urge the government to reduce the GST rate from 28 per cent to 18 per cent for entry-level two-wheelers in the 100-125 cc range.

This change isn’t just a policy adjustment, it’s a catalyst for socio-economic progress,” Manish Raj Singhania, President, Federation of Automobile Dealers Associations (FADA), said.