Demand for reducing GST on two wheelers to 18 percent in the budget, automobile dealers plead
FADA demands reduction of GST on two wheelers in Budget 2022
New Delhi:
The automobile sector is a major sector providing employment in the country, but it is facing challenges in the Corona era. In such a situation, FADA, an organization of automobile dealers, has urged the government to reduce the GST rates on two-wheelers to 18 percent, so that there is more sales and employment is also encouraged. Federation of Automobile Dealers Association (FADA) said that two-wheeler is not a luxury product and hence there is a need for relief in GST rates. FADA represents more than 15 thousand automobile dealers who have around 26,500 dealerships. The industry body said, we request the Finance Ministry to reduce the GST rates on two wheelers by 18 percent.
Finance Minister Nirmala Sitharaman is going to present the Union Budget for the financial year 2022-23 in Parliament on February 1. FADA said that two-wheelers are not used as a luxury, but are used by the general public for daily work. So the 2 per cent cess, which is for luxury products, along with 28 per cent GST, is not suitable for small vehicles. With the vehicle prices increasing continuously due to increase in raw material, the reduction in GST rate will help in countering the cost escalation and boosting demand.
At the same time, telecom companies have demanded refund of input tax credit of about Rs 35,000 crore in the budget, reduction in charges applicable on license and spectrum usage and removal of GST. It has been said in the recommendations submitted that the government should suspend the Universal Service Obligation Fund constituted for the spread of telecom services in rural areas.
He says that by doing this the burden on the service providers will be reduced. Telecom companies have demanded refund of unutilized ITC of Rs 35,000 crore, saying that this fund cannot be used in the near future also. demanded to be cut.