Ceat Limited will reduce prices across its tyre range from September 22, following the government's decision to cut goods and services tax rates on tyres. The Mumbai-based manufacturer said it would pass on the full tax benefit to dealers and customers after the 56th GST Council meeting approved rate reductions for the tyre industry.
The GST rate on new pneumatic tyres has been reduced from 28% to 18%, while tractor tyres and tubes will attract a 5% rate. The price cuts will apply to tyres for commercial vehicles, agricultural machinery, passenger cars and two-wheelers.
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Ceat’s managing director Arnab Banerjee said, “We thank the Government of India and the GST Council for their timely and progressive decision to rationalise tax rates in the tyre sector. The reduced GST slabs will greatly benefit the tyre industry and consumers alike. Not only will it lower the cost of owning and operating a vehicle for customers across various segments, but by making tyres more affordable to replace, it will also make our roads safer. All in all, the move will spur formalisation and greater compliance, while also fostering sustainable growth in the sector.”
