TVS Motors bats for lower GST on two-wheelers, Auto News, ET Auto

TVS Motors bats for lower GST on two-wheelers NEW DELHI: Home-grown two-wheeler manufacturer TVS Motors has demanded lowering of the goods and services tax (GST) on two-wheelers from current rate of 28 per cent.

The company, which is the third largest two-wheeler manufacturer, said that two-wheeler is an item for mass mobility and cannot be benchmarked against luxury and sin goods.

“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.” Venu Srinivasan, Chairman, TVS Motor Company said in a statement

He added that the transition to safety norms and BSVI emission norms 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.” Srivisan Said.

On the outlook of the two-wheeler segment, he said, “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”.

TVS Motor Company recently reported 6 per cent growth in total sales at 271,395 units in the month of December 2018. The two-wheeler major sold 256,870 units in December 2017, TVS Motor said.

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