Will GST rate cut on two wheelers bring festive cheer?

Times are grave as auto industry has seen de-growth of 75.49% (-75.49%) in domestic sales for the period between April-June 2020-21, with two-wheelers domestic sales de-growth of 74.21% (-74.21%).  The COVID-19 pandemic has ripped the economy and the auto industry severely. Things are slowly limping back and hopes have now been pinned on the festive season.  In July, the auto industry saw after consecutive months of significant de-growth “signs of green shoots in PVs and two-wheelers.” SIAM has pointed out that “the sales numbers in the month of August would indicate if this is a sustainable demand and not just a pent-up demand.” Therefore, a possible GST cut on two-wheelers could be just the right thing to happen as the country gets into a festive mood. However, any adverse decision by the government could have a drastic impact on the auto industry.  On August 25th, Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs, said that the lowering of GST rates on two-wheelers “was indeed a good suggestion as this category is neither a luxury nor sin good and merits a rate revision.”  While TURN OF SPEED has learnt that the matter is yet to be taken up by the Fitment Committee for