Budget 2022: FADA seeks GST rate cut on two-wheelers to 18 pc to spur demand
GST
Dated:- 17-1-2022
New Delhi, Jan 17 (PTI) Automobile dealers' body FADA has urged the government to reduce GST rates on two-wheelers to 18 per cent in order to generate demand in the segment.
The Federation of Automobile Dealers Association (FADA), which represents over 15,000 automobile dealers having 26,500 dealerships, noted that two-wheelers are not a luxury item and hence GST rates need to come down.
"FADA requests the Ministry of Finance to regulate and reduce GST rates on two-wheelers to 18 per cent and continue to move our nation to global leadership," the industry body stated on Monday.
Finance Minister Nirmala Sitharaman
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will increase the tax collections. In the mid to long-term it will actually be revenue positive and also help bring in positivity in the overall consumer sentiment and thereby the overall economy," the industry body stated.
It also sought a uniform GST rate of 5 per cent on the margin for all used vehicles, to create a win-win situation for the government, dealers, and vehicle owners.
"With the reduction in GST, it will help the industry to shift from unorganised segment to organised segment thus bringing in more business under the ambit of GST helping in putting brake on tax leakages," FADA noted.
The government currently charges GST on used cars at the rate of 12 and 18 per cent.
The cars under 4,000 mm are charged 12
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