India is contemplating a substantial reduction in the Goods and Services Tax (GST) applicable to two-wheelers and small cars as part of an extensive reform initiative. The proposed plan could see the GST rate for these vehicles lowered from the current 28% to 18%.

This potential change aims to offer relief to consumers, stimulate demand, and provide a much-needed boost to the automotive industry. The government’s move reflects a commitment to fostering economic growth and addressing the concerns of the automotive sector amidst challenging market conditions.