GST 2.0: Shopping is considered auspicious on Diwali. In such a situation, if your favorite thing is found at a low rate with discounts, then it will be icing on the cake. It is expected that small cars and two -wheelers may be cheap in this festive season. The central government is planning to reduce the Goods and Service Tax (GST) on cars and bikes from 28 percent to 18 percent.
If this happens, then the price from car to bike can decline by 10 percent. Because of this, many people are now waiting for Diwali by postponing their shopping. Due to this, sales in the auto sector have slowed down as everyone is waiting for the decisions to be taken in the GST Council meeting on the new tax slab.
Auto sector lethargy
Since, people are still waiting to cut GST rate. People are avoiding their first made plans to buy cars or bikes. Its effect has started appearing on the auto sector. Meanwhile, the sales of tractors have declined by 32 percent. The sale of two-wheelers and trucks has declined by 6-7 percent. The sale of passenger cars has also come down by 1 percent. Global brokerage firm Jefferies believes that if GST is cut, the sale of two -wheelers to small cars will immediately jump. Going
What are the expectations being raised?
The GST Council meeting is going to be held on 3-4 September. On this day, it will be finalized as to what tax will be brought under which tax slab, on which things will be reduced, etc. By the way, it is expected that 28 percent slab will be removed for small cars and bikes. Electric vehicles and tractors will be brought under the purview of 5 percent GST. GST is going to be 40 percent on luxury cars, so there is no hope of relief for premium buyers.
How much will saving be done?
If you have bought a car of 10 lakhs and on this, GST is reduced from 28 percent to 18 percent, then you will save up to 1 lakh rupees. At the same time, if there is a bike of 1 lakh, then there will be a savings of up to Rs 10,000. In such a situation, due to reduced GST, demand will increase, which will increase production to complete and employment opportunities will also arise for more and more people in the industry.
Also read:
Now branded clothes and all food items will be cheap! Government can bring 5 percent GST slab
Khanderao Deshmukh aims to guide job seekers by delivering accurate, timely, and easy-to-understand information, helping them secure stable government careers.
