The auto industry has addressed the GST reforms by revising the prices of vehicles impacted by the changes in tax slabs. Following this, the peripheral industries have also started implementing changes. Now, Ceat Limited has announced that it will reduce the prices of its tyres from September 22. The manufacturer has announced that it will pass on full tax benefits to consumers and dealers.
To elaborate, the GST rate on new pneumatic tyres has been decreased from 28 percent to 18 percent, while the rate for tractor tyres and tubes has been set at 5 percent. The price reductions will apply to tyres for commercial vehicles, agricultural machinery, passenger cars, and two-wheelers.
Also Read: Yamaha R3, MT-03 Likely To Get Rs 30,000 Price Cut Under GST 2.0
Addressing the update, Arnab Banerjee, Managing Director & CEO, CEAT Limited, said, "We thank the Government of India and the GST Council for their timely and progressive decision to rationalize tax rates in the tyre sector. The reduced GST slabs will greatly benefit the tyre industry and consumers alike. Not only will it lower the cost of owning and operating a vehicle for customers across various segments but, by making tyres more affordable to replace, it will also make our roads safer. All in all, the move will spur formalization and greater compliance, while also fostering sustainable growth in the sector."
Track Latest News Live on NDTV.com and get news updates from India and around the world
