The Automotive Tyre Manufacturers Association (ATMA) on Monday called for a reduction in GST on automobile tyres from the current 28 per cent to 5 per cent, urging the government not to classify them as luxury goods due to their significant cost impact on critical sectors such as transportation, agriculture, mining, and construction.
Currently, all major categories of automotive tyres attract GST at 28 per cent—the highest tax slab—while tractor tyres and aircraft tyres are taxed at 18 per cent and 5 per cent, respectively, ATMA stated.
In industries like transportation, agriculture, mining, and construction, where tyres constitute a substantial portion of operating expenses, a lower GST rate of 5 per cent would offer meaningful relief to small traders, farmers, and enterprises that depend on affordable transport.
ATMA also noted that reducing GST on automotive tyres would directly lower vehicle operating costs, help reduce logistics expenses, and benefit farmers, small traders, service providers, as well as the infrastructure and mining sectors.
“Tyres are indispensable to the movement of people and goods across India. Given their essential role in supporting national priorities of agriculture, logistics efficiency and infrastructure, tyres should not be treated on par with luxury goods,” ATMA Chairman Arun Mammen said.
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