Hero MotoCorp CEO Advocates 18% GST for Two-Wheelers up to 125cc, Stressing Necessity not Luxury
Hero MotoCorp CEO Niranjan Gupta advocates reducing GST on two-wheelers up to 125 cc from 28% to 18%, emphasizing affordability, mobility, and job creation
Hero MotoCorp CEO Niranjan Gupta strongly appealed to reduce the GST (Goods and Services Tax) on two-wheelers with engine sizes up to 125 cc. According to The Economic Times, Speaking in response to a query about his wishlist for the upcoming Union Budget, Gupta said that GST is not directly decided as part of the budget process but there is a compelling case for reducing the GST rate from...
Hero MotoCorp CEO Niranjan Gupta strongly appealed to reduce the GST (Goods and Services Tax) on two-wheelers with engine sizes up to 125 cc. According to The Economic Times, Speaking in response to a query about his wishlist for the upcoming Union Budget, Gupta said that GST is not directly decided as part of the budget process but there is a compelling case for reducing the GST rate from the current 28% to 18% for two-wheelers in this category.
The CEO argued that such a reduction would directly benefit a large segment of the population that relies on these vehicles for daily commuting and livelihood purposes. “There’s a strong case to reduce GST from 28% to 18% for two-wheelers up to 125 cc because they are meant as vehicles for the masses,” he stated.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
According to Gupta, these vehicles are not luxury or sin goods that typically justify higher tax rates but rather important tools that enable mobility for millions of people across India, especially in rural and semi-urban areas.
The CEO elaborated that these two-wheelers are not only essential for personal mobility but also play a major role in supporting economic activities, especially in regions where public transportation is limited or unreliable. By making these vehicles more affordable, a reduction in GST would encourage their adoption which in turn would enhance productivity and improve the quality of life for many.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
At present, all two-wheelers in India are subject to a uniform GST rate of 28%, regardless of their engine size or intended use. The Hero CEO pointed out that this high tax rate is disproportionate for entry-level vehicles that cater to essential mobility needs. He argued that treating basic two-wheelers on par with luxury goods or sin goods under the tax structure does not align with their practical importance to the population.
The Hero CEO Gupta further explained that the entry-level two-wheeler segment generates significant employment opportunities, both directly and indirectly. Manufacturing plants, distribution networks, and service centers linked to these vehicles provide jobs to thousands of people across the country.
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