Two-wheelers to become cheaper? GST Council may revise tax slab today1 min read . Updated: 27 Aug 2020, 08:44 AM IST
Shares of two-wheeler majors Hero MotoCorp Ltd, Bajaj Auto Ltd and TVS Motor Co Ltd gained 2-6% on Wednesday
A good news may come for two-wheeler companies and the customers as the GST Council meeting on Thursday. Finance Minister Nirmala Sitharaman had signaled at an industry interaction on Monday that the GST slab revision may well be on the cards for the two-wheelers.
Responding to a question about the need for lowering GST rates on two-wheelers, FM Sitharaman assured that this was indeed a good suggestion as this category is neither a luxury nor a sin good and hence merits a rate revision," the statement said.
Two-wheelers are currently taxed at 28% GST.
Shares of two-wheeler majors Hero MotoCorp Ltd, Bajaj Auto Ltd and TVS Motor Co Ltd gained 2-6% on Wednesday after finance minister Nirmala Sitharaman endorsed the need for a reduction in the goods and services tax (GST) for two-wheelers.
The 41st meeting of the Goods and Services Tax (GST) Council, to be held via video conferencing, is likely to be a stormy affair as opposition-ruled states unite to pressure the Centre to give them the promised compensation for loss of revenue arising from the implementation of GST.
Under the GST structure, taxes are levied under 5, 12, 18 and 28 per cent slabs. On top of the highest tax slab, a cess is levied on luxury, sin and demerit goods and the proceeds from the same are used to compensate states for any revenue loss.