The Federation of Automobile Dealers Associations (FADA) has urged the GST council to reduce GST rate on two-wheelers. The automobile body is demanding the GST rates to be reduced from the current 28% to 18% immediately. FADA says that it has submitted its request for GST rate reduction on two-wheelers to Finance Minister, chair of the GST Council, all GST Council members, the Ministry of Heavy Industries, which supervises the automobile sector and the Ministry of Road Transport & Highways. Two-wheelers accounted for 78% of the total automobile sales in the country in 2016. Due to increasing prices, the contribution has decreased to 72% in 2023, the automobile body emphasizes.

Source: Mint May 19, 2023 04:40 UTC