New Delhi, 12 September (IANS). India’s legendary tire company Siat Limited on Friday announced the transfer of the goods and service tax (GST) deduction to the customers.
Ceet said in the press release that the company will transfer 100 percent benefit of GST to customers.
GST has been cut by the company on all its products and the new prices will be applicable from September 22.
The government has reduced GST from 28 percent to 18 percent on new pneumatic tires, while now five percent GST rate will be applicable on tractor tires and tubes.
Arnab Banerjee, Managing Director and CEO of CEAT Limited, described the rationalization of GST as a timely and progressive decision.
Banerjee said, “The low rates of GST will greatly benefit both tire industry and consumers. This will reduce the ownership and operation of the vehicle for customers in different fields and will become more economical.”
He said that by changing the tires on time, our roads will also be safe. This step will promote formality and better compliance, as well as sustainable development in this area.
According to industry sources, domestic tire industry is expected to increase by 7-8 percent in this financial year due to replacement demand. Despite the low urban demand, replacement demand is likely to be supported by factors such as favorable rural trends, festive demand and deducted interest rates on consumption.
This growth is also inspired by continuous investment, better manufacturing efficiency and more focus on research and development capabilities.
India’s GST reforms are expected to reduce inflation by up to 75 basis points and increase consumption expenditure by Rs 1 lakh crore.
-IANS
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