Two-wheeler makers hold out for GST rate cut, stocks of most firms rally

Companies are optimistic that if the proposal does get accepted by the GST Council, it will certainly push demand ahead of the festive season and add heft to the recovery underway

The government’s assurance to the auto industry on reduction in goods and services tax (GST) on two-wheelers brought some cheer to manufacturers and investors.

Companies are optimistic that if the proposal does get accepted by the GST Council, it will certainly push demand ahead of the festive season and give a fillip to the sector’s recovery.

Two-wheeler sales at most firms have been rising month-on-month since June.

On Wednesday, Finance Minister Nirmala Sitharaman said the GST Council will look into the auto industry’s demand for lowering the tax rate on two-wheelers, which are now taxed at the highest slab of 28 per cent.