Auto stocks rally as GST Council set to mull tax cut on two-wheelers

The GST meeting on September 17 might take up the two-wheeler rate issue to spur sales ahead of the festive season

Shares of automobile companies were in focus at the bourses on Wednesday after Finance Minister Nirmala Sitharaman said the Goods and Services Tax (GST) Council would look into the auto industry’s demand for lowering the tax rate on two-wheelers, which are now taxed at the highest slab rate of 28 per cent.

“Since two-wheelers are neither a luxury nor a sin product, they merit a rate revision. Consequently, this will be taken up with the GST Council,” Sitharaman said during an interaction with members of the Confederation of Indian Industry (CII) yesterday.

At 10:10 AM, the Nifty Auto index, the top sectoral