FADA Appeals to MoRTH for Lowering GST on 100-125cc Two-Wheelers

A group of representatives from the Federation of Automobile Dealers Association (FADA) recently met with Nitin Gadkari, the Union Minister for Road Transport and Highways, to discuss certain matters. One of the key points raised during the meeting was a request to lower the tax rate on affordable motorcycles and scooters.

During the course of the meeting, FADA put forward a proposal to reduce the Goods and Services Tax (GST) on two-wheelers with engine capacities ranging from 100 to 125 cc. They suggested that the current GST rate of 28 percent for this category be revised down to 18 percent. FADA’s rationale behind this proposal is rooted in the belief that such a reduction in the GST rate for entry-level two-wheelers would not only stimulate the industry but also significantly alleviate the financial burden on potential buyers.

Manish Raj Singhania, the President of FADA, pointed out that various segments within the automotive sector had faced challenges due to the impact of the COVID-19 pandemic. However, he highlighted that the situation had improved notably since then. Singhania explained that the entry-level two-wheeler segment had suffered a decline of over 20 percent subsequent to the GST hike. Therefore, FADA has formally requested a reduction of the GST rate to 18 percent for this category of vehicles.

Furthermore, FADA is organizing a conclave on September 14th, which will mark its fifth edition. The Union Minister, Nitin Gadkari, has been extended an invitation to participate as the chief guest for this event. The theme of the conclave is centered around the concepts of collaboration, acceleration, and celebration.