GST cut on two-wheelers to ease cost for first-time buyers: Hero MotoCorp chairman Pawan Munjal

Lowering GST on two-wheelers will serve as a crucial enabler, offering much-needed relief to first-time buyers, especially in rural and semi-urban areas, where two-wheelers remain the backbone of personal mobility, Hero MotoCorp chairman Pawan Munjal said on Monday, PTI reported.

Ahead of the upcoming GST Council meeting scheduled for September 3 and 4, Munjal welcomed the government’s proposed reforms and the possible cut in GST rates on two-wheelers, calling it a “progressive step” that will significantly enhance accessibility and affordability for millions of Indians, particularly those purchasing their first vehicle.

He further emphasized that the two-wheeler industry is not only a key driver of personal and rural mobility but also a vital pillar of the national economy, contributing substantially to government revenues and generating employment across its extensive value chain. Currently, two-wheelers with engine capacity up to 350 cc attract a 28 percent GST, while those with engines above 350 cc are subject to 28 percent GST along with a 3 percent compensation cess, PTI reported.


The GST Council meeting will deliberate on the Centre’s reform plan, which proposes that most goods be taxed at either 5 percent or 18 percent.

With inputs from PTI