Source : PTI | Automobile dealers’ body FADA on Wednesday sought GST reduction on entry-level two-wheelers to 18% from 28% currently. A delegation of the Federation of Automobile Dealers Associations (FADA) submitted a letter to Minister of Road Transport and Highways (MoRTH) Nitin Gadkari in this regard.
FADA has requested for GST rate cut on entry-level two-wheelers, predominantly within the 100-125 cc segment.
“With two-wheelers accounting for over 75% of the volume and over 70% of this stemming from the entry-level category, it’s imperative to address the over 20% decline we’ve observed since pre-Covid times,” FADA President Manish Raj Singhania said.
To propel India towards becoming a USD 47 trillion economy by 2047, every segment of the domestic automobile industry must function at its zenith, he added.
“Reducing the GST from 28% to 18% for entry-level two-wheelers is more than just an economic strategy; it’s about empowering the common man and boosting rural mobility,” Singhania stated.
“FADA believes that a GST revision would significantly alleviate the burden on potential buyers, especially in rural India, and catalyse the resurgence of this vital industry segment,” Singhania said.
FADA represents over 15,000 automobile dealers having 26,500 dealerships across the country.
