Siam writes govt, pushes for GST reduction on low-carbon two-wheelers

The Society of Indian Automobile Manufacturers (Siam) has requested the Ministry of Heavy Industries to reduce the GST on low-carbon two-wheelers, such as ICE flex-fuel and CNG two-wheelers, from 28% to 18%, and eventually to 12% to differentiate them from standard two-wheelers. \r

Siam argues this reduction would be a direct and clean method to promote low-carbon vehicles without subsidies. This move would benefit companies like Bajaj Auto, poised to launch a CNG-powered e-scooter. Siam highlights India's high GST rate on two-wheelers compared to other countries and urges a reduction to 18% for all two-wheelers. \r

A senior executive stated this change could propel India towards greener, more fuel-efficient transportation.