Government Reduces GST on Tyres, Industry Welcomes Move

The Automotive Tyre Manufacturers' Association (ATMA) has expressed appreciation for the government's recent decision to reduce Goods and Services Tax (GST) rates on tyres, describing it as a positive development for consumers and road safety.

The tax reduction addresses a long-standing industry concern regarding the classification of tyres under the highest GST bracket of 28 percent, which placed them alongside luxury goods despite their essential role in transportation and logistics.

According to ATMA Chairman Arun Mammen, the lower tax rate will benefit diverse user segments including farmers, small traders, transporters, motorists, and logistics operators by making tyres more affordable and reducing overall vehicle operating costs.

The association emphasized that tyres serve as critical components across all vehicle categories, from commercial trucks and buses to passenger cars, two-wheelers, three-wheelers, tractors, and industrial equipment used in construction and mining operations.

ATMA highlighted the potential safety benefits of the tax reduction, noting that high tyre prices often lead vehicle owners to delay necessary replacements. This practice of using worn-out tyres beyond their recommended lifespan increases accident risks on roads.

The organization expects that improved affordability will encourage more timely tyre maintenance and replacement practices among motorists and fleet operators, contributing to enhanced vehicle safety and passenger protection.

The GST reduction is anticipated to provide relief to both consumers and the tyre manufacturing industry while supporting the broader goal of reducing transportation costs across India's logistics network.