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Category :
industry
Headline :
FADA seeks reduction in GST rates for entry-level two-wheelers to 18%
Date:
14/09/2023 16:38
The Federation of Automobile Dealers Associations (FADA) has called for a reduction in the Goods and Services Tax (GST) rates on entry-level two-wheelers to 18 percent, citing the segment's ongoing struggle to recover from the impact of the COVID-19 pandemic.
During the Auto Retail Conclave, FADA President Manish Raj Singhania expressed that while total vehicle retail sales have grown by approximately 7 percent in the current fiscal year, the entry-level two-wheeler category has not experienced the robust recovery observed in other segments. Singhania noted that despite some year-on-year growth in the two-wheeler segment, it remains 20 percent below pre-COVID levels.
Addressing Union Road Transport and Highways Minister Nitin Gadkari, who was the chief guest at the event, Singhania emphasized the need for a reduction in the GST rate from the current 28 percent to 18 percent for entry-level two-wheelers, specifically those in the 100cc and 125cc segments. He highlighted that such a change would not only be a policy adjustment but also serve as a significant socio-economic catalyst, given that this segment contributes 75 percent of the total auto sales volume.
According to FADA data, during the period from April to August in the current fiscal year, two-wheeler sales reached 65,15,914 units, compared to 62,35,642 units in the same period of the previous fiscal year, representing a growth of 4.49 percent. Overall vehicle sales across categories for the April-August period in the current fiscal year reached 91,97,045 units, a 6.75 percent increase compared to the 86,15,337 units recorded in the corresponding period of the previous fiscal year, according to FADA's statistics.
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