Indore: Ahead of the meeting of GST Council, scheduled on December 22 in New Delhi, Ahilya Chamber of Commerce has proposed certain suggestion to the Council to help out the real users. Sushil Sureka, General Secretary, Ahilya Chamber of Commerce and Industry informed that we have sent a memorandum to the Chairman of the council to consider the suggestions on the basis of merit.
Sureka said that after 1.5 year of implementation of GST, Chamber again suggest for few more fitment of products under different slab. These suggestions are made looking at present market situation, business structure, usage of goods and collection of revenue. Also to add, it will help in better tax compliance.
The Chamber has suggested items like cement, motor cycles (2 wheelers), spares of 2 wheelers etc, except SIN GOODS (eg Pan Masala, Cigarette, Luxury cars, Air Conditioning machines etc) should be brought to 18% Slab. Motor Cycles, 2 Wheelers( HSN 8711): Motor Cycles (2 wheelers) are basic need of the middle and the lower middle class people.
These are not a luxury but integral part of mode of transportation for common man. In addition to GST, Insurance rules have increased the rates of two wheelers in multiple fold. Insurance for 3 years has already increased one time investment of buyer.
India is a very big market for 2 wheeler vehicles. Looking at its importance in middle and lower class, the Chamber suggests to bring 2 wheelers (HSN code: 8711) under 18%. For luxury motor cycles of more than 350 CC, additional cess can be implemented. Presently cess on motor cycle more than 350 CC is 3%.