In the 2022-23 budget, FADA's latest demand is for 18 percent GST on two-wheelers instead of the current 28 percent.

Consumers will profit from a new problem highlighted by the Federation of Automobile Dealers Association (FADA). It has urged that the government lower the two-wheeler Goods Service Tax (GST) rate to 18%. Two-wheelers, according to FADA, are not a luxury item. Ordinary folks utilize it for day-to-day tasks. A two-wheeler is classified as a luxury vehicle and is subject to a 28 percent GST plus a 2% chase, which is not appropriate for this category.

According to FADA, car prices have been constantly growing as the cost of raw materials, metals, and components has risen. Reduced GST will lower prices while increasing demand. This will have an impact on a variety of industries while also increasing tax revenue. Furthermore, FADA has requested an extension of the depreciation scheme 2022-23, which expired on March 31, 2020, in order to provide taxpayers with the advantage of vehicle depreciation claims.

Tax breaks for sole proprietorships and partnerships

Corporate tax on private limited firms with a turnover of up to Rs 400 crore has been cut to 25% by the government. FADA has asked that Limited Liability Partnership (LLP), proprietary, and partnership entities receive the same advantages.

Reduces the GST red on old vehicles to 5%

GST rates for old vehicles are currently 12% and 18%. Official dealers, on the other hand, account for barely 10%-15% of the market. A dealer does not receive an ITC claim when he buys a secondhand automobile from a consumer. This unified GST rate of 5% will benefit the government, dealers, and car owners.

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