Skip to main content

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 icon5567 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

RELATED ARTICLES

BMW India Sees Little Scope for Hybrids, Expects Diesel to Lose Out as EVs Gain

auther Kiran Murali calendar12 Sep 2026

The German carmaker rules out plug-in hybrids citing cabin packaging compromises and long-range battery gains, as EVs re...

ARAI Cylinder Testing Facility Gets NABL Accreditation

auther Eshisha Java calendar12 Sep 2026

ARAI cylinder testing facility at Takwe, Pune, receives ISO/IEC 17025 NABL accreditation for high-pressure gaseous cylin...

Yulu Opposes MoRTH's Move to Deregulate Low-Speed EV Mass

auther Shahkar Abidi calendar12 Sep 2026

Yulu has opposed MoRTH’s proposal to remove the 60kg weight limit for low-speed EVs, citing road safety, enforcement and...