This will not be considered as ‘double Diwali’, vehicles will be cheaper in festive season; GST 2.0 will boost automobile industry

GST 2.0: Prime Minister Narendra Modi, while addressing the people of the country from the ramparts of the Red Fort on the occasion of Independence Day on August 15, announced the improvement in GST. He said that by Diwali this year, GST (Goods and Services Tax) of Next Generation will be implemented. With this, many things used in everyday life will become cheaper.

Public will get ‘double gift’ of Diwali

PM Modi said, “This Diwali I am going to give you a double gift. Eight years of indirect tax system have been completed. Now the time has come to review it again. A high-scale committee has been formed after talking to the states. This will reduce tax on many things used in everyday, which will benefit consumers, MSMEs and small businessmen.

GST may decrease on vehicles

According to the news, under the new tax system, GST on two -wheelers and small cars can be reduced from 28 percent to 18 percent. This will greatly help the automobile industry, whose sales have seen a decline in recent times. The beginning of the year 2025 may not be beneficial for the auto industry, but it may be beneficial for them to cut GST. According to reports, this year the sale of all the other tractors except the tractor has reduced. There has been a decline of 4 percent in the sales of two -wheelers. The sales of cars have also declined by 1 percent, while commercial vehicles remained stable.

Demand may increase due to reduction in GST

If the government cuts GST according to the plan, then two -wheelers and small cars can become more economical. In such a situation, during the festive season, people will be encouraged to buy a car due to low price. In such a situation, demand may increase in the entire auto sector including two -wheelers, small cars and commercial vehicles.

How many prices will fall?

If GST is reduced from 28 percent to 18 percent, it can cause about 7 % decline in the prices of vehicles. This means that customers can save well when buying this Diwali bike or car. Since more and more people make shopping planning during the festive season. In such a situation, the auto industry will benefit from the fall in prices.

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