Lower GST on Two-Wheelers Will Boost Affordability, Aid First-Time Buyers: Hero MotoCorp Chairman

Lowering of GST on two-wheelers will serve as a crucial enabler, offering much-needed relief to first-time buyers, especially in rural and semi-urban areas, where it is the backbone of personal mobility, Hero MotoCorp Pawan Munjal said on Monday.

Ahead of the meeting of the GST Council this week, Munjal said the two-wheeler industry is not only a key driver of mobility but also a vital pillar of the national economy, contributing substantially to government revenues and generating employment across its value chain.

Welcoming the government's decision for GST reforms and a possible cut in GST rates on two-wheelers, in a statement, he said, "This progressive step will serve as a crucial enabler, offering much-needed relief to first-time buyers, particularly in rural and semi-urban areas, where two-wheelers remain the backbone of personal mobility. It will significantly enhance accessibility and affordability for millions of Indians." He further said the two-wheeler industry is not only a key driver of mobility but also a vital pillar of the national economy, contributing substantially to government revenues and generating employment across its value chain.

At present, two-wheelers of up to 350 cc engine are placed at 28% GST slab, while those with an engine capacity of over 350 cc attract 28% GST with 3% compensation cess.

The meeting of the GST Council, chaired by Union Finance Minister and comprising ministers from all states and UTs, on September 3 and 4, to discuss reforms proposed by the Centre that mooted most goods be charged at either 5 per cent or 18 per cent.