Call for GST Reduction on Two-Wheelers: A Mass Mobility Appeal

Hero MotoCorp CEO Niranjan Gupta advocates for reducing GST on two-wheelers up to 125 cc from 28% to 18%, arguing they are essential for mass mobility and employment generation. He emphasizes the need for consistent government policies to ensure long-term economic stability and growth.

Hero MotoCorp CEO Niranjan Gupta has made a compelling case for reducing the Goods and Services Tax (GST) on two-wheelers up to 125 cc. Speaking on Wednesday, Gupta highlighted how these vehicles serve as a crucial mobility option for the masses and are not classified as sin or luxury goods.

Gupta suggested that the GST rate for these two-wheelers should drop from the current 28% to 18%, pointing out that entry-level motorcycles play a significant role in generating both direct and indirect employment across the country. He urged the government to focus on long-term growth, stability, and investment to support economic development.

In light of the upcoming Union Budget, Gupta expressed that while GST might not be directly addressed, maintaining a consistent policy environment is crucial for business adaptability. Expanding employment generation schemes would further support this aim, he added. Currently, two-wheelers are subject to a uniform 28% GST rate.

(With inputs from agencies.)