ATMA Urges GST Cut on Tyres to Ease Logistics, Support Key Sectors

At present, all major categories of automotive tyres attract 28% GST, while tractor tyres and aircraft tyres are taxed at 18% and 5% respectively.

Arunima  PalBy Arunima Pal calendar 01 Sep 2025 Views icon5163 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
ATMA Urges GST Cut on Tyres to Ease Logistics, Support Key Sectors

The Automotive Tyre Manufacturers Association (ATMA) has called for a reduction in Goods and Services Tax (GST) on tyres, arguing that the current rate of 28%, the highest slab, burdens vehicle operators and inflates logistics costs across sectors.

ATMA said lowering GST on tyres would directly cut vehicle operating expenses, particularly in the commercial segment, and benefit farmers, small traders, service providers, as well as infrastructure and mining industries. At present, all major categories of automotive tyres attract 28% GST, while tractor tyres and aircraft tyres are taxed at 18% and 5% respectively.

In a representation to the Union Finance Minister, ATMA stressed that tyres are fundamental enablers of mobility across trucks, buses, passenger cars, two- and three-wheelers, tractors, and construction and mining equipment, and should not be taxed on par with luxury goods.

“Tyres are indispensable to the movement of people and goods across India. Given their essential role in supporting national priorities of agriculture, logistics efficiency and infrastructure, tyres should not be treated on par with luxury goods,” said Arun Mammen, Chairman, ATMA.

The industry body has recommended that GST on tyres be reduced to 5%, which it said would meaningfully ease cost pressures in transportation, agriculture, mining and construction.

ATMA also cautioned that any delay in rate rationalisation could lead to an accumulation of unutilised Input Tax Credit (ITC) with tyre dealers. To avoid working capital stress, the association has urged the government to announce revised rates promptly and allow a one-time refund of unutilised ITC.

Tags: ATMA
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