India’s largest two-wheeler maker Bajaj Auto has sought a reduction in goods and services tax (GST) on CNG two-wheelers, sources told CNBC-TV18 on August 22. The proposal is likely to be taken up soon for consideration by the fitment committee under the GST Council, they said.
Bajaj Auto has sought that CNG two-wheelers be considered under the EV vehicles category, which currently attract 5% GST, according to sources.
The development comes after Rajiv Bajaj, CEO of Bajaj Auto, recently met officials at the Finance Ministry.
Last week, sources had indicated to CNBC-TV18 that Bajaj Auto was getting ready to increase the manufacturing capacity for its CNG motorcycle to 20,000 units per month by September or October this year.
The company had commercially launched the world’s first CNG motorcycle on July 5 and has so far sold 1,600 units of the motorcycle.
Bajaj Freedom 125 is the world’s first CNG integrated motorcycle and is available in three variants, with a starting price of ₹95,000 ex-showroom. According to the company, the Freedom 125 brings down operating costs by 50% and gives a range of 330 kilometres. The motorcycle has a dual fuel capability with both a CNG cylinder and a two litre petrol tank.
Meanwhile, earlier in the day, sources said Bajaj Auto has received approval for all the 13 vehicles it had sought production-linked incentives (PLI) for. The Ministry of Heavy Industries has processed Bajaj Auto’s application for incentives and confirmed that the company meets the domestic value addition criteria, they said.
Source: CNBC TV18
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