gst: Reduce GST on entry-level two-wheelers: FADA to Centre

The Federation of Automobile Dealers Associations (FADA) on Thursday urged the government to reduce the GST on entry-level two-wheelers to 18%, saying the segment has not recovered from the impact of the pandemic. The GST rate set for this segment is 28%.

At the Auto Retail Conclave here, FADA president Manish Raj Singhania said while retail sales of automobiles have grown by around 7% in the current fiscal, the entry-level two-wheelers are yet to post strong expansion in volume. “Although the two-wheelers segment experienced year-on-year growth, we are still 20% behind the pre-Covid levels,” Singhania said, adding, “That’s why FADA strongly urges the minister to help us get a reduction in GST rate from 28% to 18% for entry-level two-wheelers that are the 100cc and 125cc segments.”