ICICI Direct: GST Rate Cut Proposed For Two-Wheeler Segment

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Media reports say that the government is considering reducing Goods and Services Tax rate on Two-Wheeler, recognising that vehicles are neither ‘luxury’ nor ‘sin’ goods and, hence, should not attract a high GST rate.It is said that the GST Fitment Committee has been asked for its recommendations in this regard, with the decision to then be ratified by GST Council.The Two-Wheelers currently (along with rest of the auto industry) are taxed at 28%.It has been a long standing demand of the industry to at least temporarily reduce the rate to 18% to counteract a rise in vehicle acquisition costs over the previous 18 months via introduction of various safety features (including anti-lock braking system /combined braking system), implementation of BS-VI norms and increase in registration fees and road tax by some states.It is contended that a reduction in upfront price to be paid by consumers would boost sentiments and spur demand.During the present post-Covid-19 environment of reduced incomes and consequent propensity to spend, any reduction in upfront acquisition costs could provide further fillip to ongoing steady improvement in demand (auto industry retail volumes back to approximately 70% of pre-Covid levels in recent days)..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: GST Rate Cut Proposed For Two-Wheeler Segment

ICICI Direct: GST Rate Cut Proposed For Two-Wheeler Segment

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