The Society of Indian Automobile Manufacturers (SIAM) wants motorcycles and scooters in India to get cheaper. To make this happen, it has proposed a reduction in GST for various segments of two-wheelers.
This industry body wants the Government of India to cut the GST to 18 per cent from the current 28 per cent. It also wants green vehicles like flex-fuel and CNG bikes to attract a lesser tax of 12 per cent. Furthermore, SIAM urged the ministry to remove the 3 per cent cess imposed on all two-wheelers above 350cc.
Currently, the prices of bikes and scooters are quite high and in some cases, difficult for Indian consumers to buy the right bike or scooter. The prices have increased due to various norms coming into effect like BS6 and increases in insurance premiums. The GST rate cut will most likely make the industry sell more vehicles as the overall price of the products will come down drastically.