New Delhi, Aug 26 (PTI) Auto stocks were in demand on Wednesday, rising up to 7 per cent, after Finance Minister Nirmala Sitharaman said two-wheelers are neither a luxury nor sin goods and so merit a GST rate revision.
Shares of TVS Motor Company zoomed 6.96 per cent, Hero MotoCorp jumped 5.17 per cent and Bajaj Auto gained 4.22 per cent on the BSE.
Among other auto stocks, Tata Motors rose by 3.89 per cent, Eicher Motors 3 per cent, Mahindra and Mahindra 2.60 per cent and Ashok Leyland 1.35 per cent.
The BSE Auto index was quoting 1.51 per cent higher at 18,280.89 in the morning trade.
Two-wheelers are neither a luxury nor sin goods and so merit a goods and services tax (GST) rate revision, Finance Minister Nirmala Sitharaman said at an industry interaction on Tuesday.
According to a statement issued by CII, which was also issued by the finance ministry’s spokesperson, Sitharaman said a rate revision proposal would be taken up by the GST Council.
Two-wheelers currently attract 28 per cent GST.
“Responding to a question about the need for lowering GST rates on two-wheelers, she assured that this was indeed a good suggestion as this category is neither a luxury nor a sin good and hence merits a rate revision,” the statements said.
This “will be taken up with the GST Council”, the statements quoted Sitharaman as saying.
Last year, the country’s largest two-wheeler maker Hero MotoCorp had urged the government to consider a phase-wise reduction in GST on the segment, starting with bringing bikes up to 150 cc into the 18 per cent slab.