Tyre Manufacturers Advocate for GST Reduction
The Automotive Tyre Manufacturers Association has urged the government to lower GST on automotive tyres from 28% to 5%, arguing it could significantly reduce costs in transportation, agriculture, mining, and construction sectors. They emphasize tyres are essential goods, not luxury items, deserving lower taxation.
- Country:
- India
The Automotive Tyre Manufacturers Association (ATMA) is lobbying for a reduction in GST on automotive tyres from the current 28% to a more modest 5%. The association contends this move would alleviate financial burdens on key industries such as transportation, agriculture, and construction by reducing operating costs.
All categories of automotive tyres are taxed at the highest GST rate of 28%, apart from tractor and aircraft tyres which attract 18% and 5% respectively. ATMA highlights the potential economic benefits of a uniform 5% GST, particularly for small traders and farmers.
Arun Mammen, ATMA Chairman, described tyres as vital components for mobility and infrastructure while urging policymakers to reconsider their classification as luxury goods. ATMA also raised concerns about unutilised Input Tax Credit, stressing the need for timely announcements and possible refunds.
(With inputs from agencies.)
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