According to a social media post on LinkedIn, Eicher Motors-in the middle-sized two-wheeled manufacturer Royal Enfield requested the government to consider a uniform GST GST rate for motorcycles, including higher capacity bikes. According to multiple media reports, the revised GST structure is likely to reduce the tax imposed on smaller capacity bikes to 18%, while the higher capacity will attract a higher GST rate. According to a PTI report, the current norms in India mandate that cars attract a 28% GST rate, together with a compensation task, ranging from 1% to 22%, depending on the type of vehicle. A uniform GST rate? The chairman of Eicher Motors, Siddhartha Lal, highlighted how Indian two -wheeling brands dominate the worldwide small capacity worldwide. He also said that the sector is now making its way into the mid-capacity motorcycle segments. “This is an urgent and sincere appeal to our respected policymakers and the public regarding the recent GST announcement,” Lal said in his post. Siddhartha Lal explained that he expects the GST to lower the sub-350cc category to help ‘broaden’ access, but the increased rates for bikes with a higher capacity will damage India’s lead in the global market. ‘To maintain this momentum, a uniform GST of 18% over all two -wheelers is critical. The reduction of GST for 350cc would be a segment that is essential for the global lead of India, ‘he says in his LinkedIn post. Lal highlighted how a differential GST rate system would shrink India’s category of more than 350 cents, and the investment needed for India choke to compete in the world market. “Raising GST on them would add negligible income, but the segment rally. For Indian riders, these motorcycles are not luxury goods; these are effective, affordable alternatives to cars, which provide lower fuel use and maintenance – benefits that also help to reduce India’s fuel imports,” he said in his post. Lal mentions the fact that only about 1% of people in India own motorcycles above the 350 cc segment. The chairman also said that India leads the two-wheel market segment compared to China, Japan, Europe and the United States, and possibly moving to a uniform GST regime, will strengthen the strength of this leadership. According to the official data, India currently has a four-level GST rates that start with 5%, then 12%, 18%and 28%.
GST Reforms: Royal Enfield asks for uniform 18 percent on two wheelers – ‘India is already leading …’
