GST on riding helmets hurting road safety in India
GST On Riding Helmets: Even though a lot has been spoken in the press and from OEMs on how additional cess on SUVs and superior automobiles would lead to declining sales small is said by how two-wheeler flying helmets are put under 18 percent GST slab and also is an entirely ridiculous movement by the GST Council.
At the pre-GST age helmets needed excise duty of roughly 12.5 percent and distinct value added taxation (VAT) over various nations but then many nations like Tamil Nadu, Punjab, Goa and UT such as Pondicherry had exempted VAT on helmets which permitted the helmets to be at least 10% more affordable than what it’s currently post GST. To be able to promote road safety allowing helmets to be exempted from GST may be the point that is perfect to market the usage of helmets.
Placing helmets beneath 5 %’s tax arrangement would not please vendors and the producers but would make the helmet cheaper making roads a secure location and riding. Current GST on helmets is accelerating revenue of helmets at India and compromises on security of riders.
Ministry of road transportation and GST Council should think of a remedy to advertise the usage of helmets for the riders and pillion rider since the industry appears at double digit increase in the marketplace. Beginning with decreasing taxes and conducting campaigns in tier-3 and tier-2 towns that have seen a significant growth of riders.
ISI Helmets manufacturers institution (ISIHMA) that the entire body of coordinated helmet makers had already said that putting helmets in zero GST rate will induce sales of very good quality helmets, “Helmets should not be treated as other commodities.
It seems just like post-GST has slowed down after having spoken in cities such as Kolkata, Bangalore, Jaipur and Chennai. We expect the GST council reviews its decision and create by decreasing GST on helmets, riding enjoyable and safe again.
