He said that the current rate of GST on two-wheelers is at par with the earlier tax rate of excise and VAT, and does not require changes.
Although country’s top two-wheeler manufacturers have sought a reduction in goods and services tax (GST) on two-wheelers to keep demand insulated from risk of price hikes, Pawan Goenka, Managing Director, Mahindra & Mahindra, does not concur with their views.
Speaking to Moneycontrol, he argued that the current rate of GST on two-wheelers is at par with the earlier tax rate of excise and VAT, and does not require changes.
“I am not looking for any GST reduction or any other incentives or sops for the auto industry. Keep in mind that 28 percent (GST on two-wheelers) is nothing but VAT plus excise. So, why are we suddenly saying that we should have lower GST (on two-wheelers). The country needs to have revenue. It is easy for us to say let’s have a lower GST,” said Goenka.
Apart from sports utility vehicles, electric cars and heavy trucks, Mumbai-based Mahindra & Mahindra is also present in the two-wheeler space. After several years of fruitless operations, the company got its footing right after the launch of the Jawa range of retro-looking medium capacity motorcycles.