Two-wheelers are neither a luxury nor sin goods and so, merit a GST rate revision, Finance Minister Nirmala Sitharaman said at an industry interaction on Tuesday.
According to a statement issued by CII, which was also issued by the Finance Ministry’s spokesperson, Ms. Sitharaman said a rate revision proposal would be taken up by the GST Council. Two-wheelers currently attract 28% GST.
“Responding to a question about the need for lowering GST rates on two-wheelers, she assured that this was indeed a good suggestion as this category is neither a luxury nor a sin good and hence merits a rate revision,” the statements said. This “will be taken up with the GST Council”, the statements quoted Ms. Sitharaman as saying.
Last year, the country’s largest two-wheeler maker Hero MotoCorp had urged the government to consider a phase-wise reduction in GST on the segment, starting with bringing bikes up to 150 cc into the 18% slab.
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