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GST News Details

Hero MotoCorp Chairman and CEO Pawan Munjal Seeks GST Reduction on 2Ws

By Varun Singh: Hero MotoCorp Chairman and CEO Pawan Munjal has sought a reduction in Goods and Services Tax (GST) on two-wheelers from the current 28% to 18%. The world's largest manufacturer of motorcycles and scooters sells models like HF Deluxe, Splendor+, Passion Pro, Glamour, Xtreme 160R, Xpulse 200T, Xoom, Pleasure+ and Maestro Edge 125.

The domestic volumes of the company declined 2.57% to 349,437 units in January 2023 from 358,660 units in January 2022. However, it has grown 9.61% to 4,270,746 units in April-January FY23 from 3,896,300 units during the year-ago period.

"Our suggestion is to consider a reduction of GST from 28% to 18% on two-wheelers in the next council meeting," Munjal said in a statement dated February 1.

"This will go a long way in boosting the much-needed growth of this sector in particular and the overall economy in general, given the multiplier nature of this sector," he added.

A GST of 28% is imposed on two-wheelers. While no cess is charged on the models with an engine capacity of less than 350cc, those having an engine capacity of 350cc and above attract a cess of 3%.

In recent times, the domestic two-wheeler industry has faced headwinds owing to a rise in inflation, high fuel prices, high ownership costs and subdued demand in rural markets.

Hero MotoCorp recently launched a new scooter, Xoom, in India. Priced between Rs 68,599 and Rs 76,699 (ex-showroom), the Hero Xoom rivals the Honda Activa and TVS Jupiter.

The new Xoom employs a 110.9cc, air-cooled, 4-stroke, SI engine, which develops 8.05bhp of maximum power and 8.70Nm of peak torque. The scooter features HiCL-Hero intelligent cornering light, which is claimed to be the first in the industry.

Source : India Today