FADA seeks 18% GST on entry-level 2-wheelers

2-wheelers account for over 75% of the volume, with the entry-level category making up 70% of it.

A delegation of the Federation of Automobile Dealers Associations (FADA) recently met the Minister of Road Transport & Highways Nitin Gadkari, seeking a reduction of GST on entry-level 2-wheelers.

FADA has requested the government to reduce the GST on entry-level 2-wheelers in the 100-125cc segment from 28% to 18%.

According to Manish Raj Singhania, President, FADA, a reduction in GST would alleviate the burden on potential buyers, especially in rural India and prove as a catalyst for the resurgence of the segment, which has seen a 20% decline since pre-Covid times. 

Singhania stated that 2-wheelers account for over 75% of the volume, with the entry-level category making up 70% of it.

Source: ET Auto