Comments from Mr. Venu Srinivasan – Chairman, TVS Motor Company on GST tax rates on two wheelers:
“Rising urbanisation, increasing purchasing power and the enhanced need for connectivity particularly in the mid-sized and smaller cities across India, has fuelled the two wheeler revolution for personal mobility. Given the importance of the two – wheeler segment as an item for mass mobility, the GST rates for two-wheelers undoubtedly needs to be reconsidered.
It certainly cannot be benchmarked against the prevalent GST rates for luxury goods at 28%, especially given the current state of inconsistencies with the integrated multi-modal public transport systems across India. More so with new safety norms and BSVI integration also around the corner, both of which will increase two wheeler prices. It has become even more imperative to relook at the GST rates for two wheelers to ensure social inclusion that is sustainable in the longer run.”