GST Tax Rate on Two-Wheelers may be Reduced

12:17 PM Aug 26, 2020 | G Plus News

GUWAHATI: Even as the government is battling much-reduced tax buoyancy and a yawning revenue deficit, finance minister Nirmala Sitharaman on Tuesday, August 25 kept alive industry’s hopes for further tax cuts.


Responding to an observation made by attendees at a CII event, on the need for lowering the rate on two-wheelers, the minister said it was “indeed a good suggestion, as this category is neither a luxury nor a sin good and hence merits a rate revision”.


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Two-wheelers currently attract 28 percent GST.


According to a statement issued by CII, which was also issued by the finance ministry's spokesperson, Sitharaman said a rate revision proposal would be taken up by the GST Council.


The remark came ahead of the 41st session of the Goods and Service Tax (GST) Council, slated for Thursday.