MHI backs SIAM proposal for reducing GST on CNG-powered two wheelers
The ministry of heavy industries (MHI) has thrown its weight behind a proposal by Society of Indian Automobile Manufacturers (SIAM), supporting their request for a reduction in GST on CNG-powered two wheelers from the current 28 per cent to 18 per cent and then to 12 per cent in stages.
The key beneficiary of the move could be Bajaj Auto, which has already launched a CNG-powered motorcycle in the market. However, other companies like TVS are also considering entering the space.
The Ministry of Petroleum and Natural Gas (MoPNG) has gone even further and also pushed for a similar reduction in GST for CNG-powered passenger cars, besides endorsing a reduction in CNG two wheelers also in their response to the proposal.
However, MHI is silent on the MoPNG request for reduction of GST on CNG passenger cars in the letter, and SIAM in its communications has made it clear that the submission they have made is only for the two-wheeler segment.
