Price of two-wheelers may come down by 10 thousand rupees
The price of two-wheelers bikes, scooters, scooty, etc. are often reduced by 10 thousand rupees. This is often possible if the central government reduces the GST rates from 28 percent to 18 percent. Rajiv Bajaj, MD, Bajaj Auto said this. The central government is considering reducing the GST rate to two-wheelers.
Plan to reduce the GST
Finance Minister Nirmala Sitharaman said on Tuesday that the products and Services Tax (GST) Council will check out tax rates for two-wheeler vehicles. He said that the demand of the auto industry to scale back the GST rate is going to be taken care of. Sitharaman said this during a meeting with the Confederation of Indian Industry (CII). Bajaj said that there are already many problems in the auto sector. In such a situation, the reduction in GST rates can benefit both the world and therefore the customer.
Two-wheeler attracts 28 percent GST
At the suggestion of reducing the GST, the minister of finance said that it’s indeed an honest suggestion, it’ll be haunted within the GST Council meeting because two-wheeler is neither a luxury item nor a harmful item. The two-wheeler currently charges 28 percent GST. On behalf of CII, it had been said that the minister of finance assured that this was a far better suggestion from the industry, so it might be thought to vary the GST rates of the two-wheeler.
Sales will increase in the festive season
Explain that thanks to the Coronavirus epidemic and lockdown, the pace of the auto industry was halted. At an equivalent time, now auto companies will want to require full advantage of the festive season. The festive season is on the way. In such a situation, after the statement of the minister of finance Nirmala Sitharaman, it’s believed that two-wheelers are often cheap before the festivals. After the vehicles become cheaper, their demand will increase.
After giving a huge relief to the MSME sector in GST (GST), the central government can now make an enormous announcement for the auto sector, especially the two-wheeler industry. Minister of finance Nirmala Sitharaman has indicated that the GST on two-wheeler rates are often reduced to a two-wheeler. At present, GST is charged at 28 percent on two-wheelers.
Let us know that on Monday, the Finance Ministry announced an exemption from Goods and Services Tax (GST) for annual business up to Rs 40 lakh. Initially, this limit was twenty lakh rupees, which has now been increased to 40 lakh rupees. Additionally, to the present, the Finance Ministry said that a mixture scheme is often opted for annual turnover up to Rs 1.5 crore. Just one percent tax has got to be paid under this scheme.
Finance Minister Nirmala Sitharaman said that the products and Services Tax Council (GST) would push the industry’s proposal to scale back tax on two-wheelers because it neither comes in luxury goods nor demerits good.
According to the knowledge, during a meeting with the Confederation of Indian Industry (CII), the minister of finance said that the govt is that specialize in the quality procedure (SoP) for hotels, banquets, and related activities to scale back the hassles of the hospitality sector.
The minister of finance said that the govt is prepared for changes within the emergency credit-linked guarantee scheme recently announced for Micro, Small, and Medium Enterprises (MSMEs).