• Notification Date: 19-01-2022
• Notification No: N/A

FADA’s Request to Government on Reducing GST on Two-wheelers

The Federation of Automobile Dealers Association (FADA) requests the government to lower the GST on two-wheelers. According to FADA, two-wheelers are not luxury items. The automobile dealers’ body wants the GST imposed on the two-wheelers to go down to 18% to increase the public demand. The body consists of over 15,000 automobile dealers that have almost 26,500 dealerships. They demand the GST on automobiles to be reduced to gain more publicity. This will further lead our nation to global leadership. The body claims that the input cost in manufacturing the two-wheelers causes a rise in the price every three or four months. Hence, to gain a greater demand among the public, the GST imposed on the two-wheelers must go down so that they are available at an affordable price.

The Federation of Automobile Dealers Association claims that two-wheelers are necessary means of transportation to cover distances by the people in both city and rural areas on a daily purpose.

As the body said, the decrease in the GST on two-wheelers will create a greater demand among the people which will again create a ripple effect on several independent sectors causing an increased tax collection. This will create a long-term positive effect on overall customer sentiment and the economy on a larger scale.

FADA has also requested a uniform tax rate of 5% for used vehicles. At present, the government charges all used vehicles with 12-18% GST. The reduction in GST will help the automobile industry to progress from unorganized to organized segments.