As we know the pandemic has affected the different sectors in life especially it had badly affected the automobile sector. Due to this it is necessary to reduce GST on both passenger and two wheelers by both state and central government. And auto dealers are expecting that the government should reduce GST rate from present 28 percent to 18 percent .The auto dealers are stated that if GST on vehicles is brought down prices of both four-wheelers and two-wheelers would decline drastically at the peak of festive season next month.
Currently in the country, the sale of two wheelers can be pegged at 22 million; however the automobile industry jacks up the prices of these vehicles, their sale may get affected. President of federation of automobile dealers association Ashish Kale said that currently passenger vehicles and two wheelers attract 28 percent GST.In addition to this, 22 percent additional surcharge is also levied on 1500 cc vehicles which is making a negative impact on the sale of these vehicles.However, the auto dealers said that the GST on the vehicles should be compulsorily brought down. As 22 percent additional surcharge is levied on luxury cars the cumulative GST charged on them goes up to about 50 percent.Dealers of Tata Motors Dr.P.K.Jain said that demand for bringing down GST on four wheelers and two wheelers is gaining momentum. If GST is brought down, the sale of vehicles would go down and government would get more revenue.Similarly, as against the practise the dealers have to pay the GST at production level. This has increased the investment of the dealers. If GST is brought down, this investment incurred by dealers would be saved. General Manager Patni Maruti Ravi Joshi remarked that festive season is around the corner; hence government must take measures to increase the sale of vehicles.