{"id":16454,"date":"2025-09-10T09:03:22","date_gmt":"2025-09-10T03:33:22","guid":{"rendered":"https:\/\/www.tyremarket.com\/tyremantra\/?p=16454"},"modified":"2025-11-28T15:17:23","modified_gmt":"2025-11-28T09:47:23","slug":"gst-rationalisation-tyre-industry-seeks-lower-gst-rates","status":"publish","type":"post","link":"https:\/\/www.tyremarket.com\/tyremantra\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\/","title":{"rendered":"GST rationalisation: Tyre industry seeks lower GST rates"},"content":{"rendered":"<p>India\u2019s biggest <strong>tyre industry<\/strong> organisation, the Automotive Tyre Manufacturers Association (ATMA) has formally requested the Indian government to consider decreasing the Goods and Services Tax (GST) on automotive tyres. The body has asked for lowering the current slab <strong>from 28% to 5%<\/strong>. Their rationale is that tyres are very important to many critical sectors of the economy such as transportation, agriculture, mining, and construction and therefore should not be treated and taxed in line with luxury goods.<\/p>\n<p>&nbsp;<\/p>\n<p>At the moment, automotive tyres attract the highest GST rate of 28%. On the other hand, tractor and aircraft <a href=\"https:\/\/www.tyremarket.com\/Car-Tyres\"><strong>tyres<\/strong><\/a> are taxed at 18% and 5%, respectively. ATMA highlighted that such a high taxation on tyres inflates vehicle operating and logistics costs. This, in turn, impacts farmers, small businessmen, and service providers who depend and seek affordable transport solutions.<\/p>\n<p>&nbsp;<\/p>\n<p>They further emphasized that lowering GST on tyres would streamline operating expenditures and strengthen national priorities linked to agriculture and infrastructure efficiency. In addition to this, ATMA also recommended swift government action to prevent potential blockage of unutilized Input Tax Credit (ITC) among dealers, suggesting a one-time refund to ease working capital concerns. This plea was submitted just prior to the <strong>GST Council<\/strong> meeting deliberating potential tax rationalization that would mostly charge goods at 5% or 18%, signaling a strategic move for significant industry relief and operational cost containment.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Strategic Timing and Industry Signal<\/strong><\/h2>\n<p>The industry\u2019s plea coincides with the 56th GST Council meeting (September 3\u20134), where broader reforms are underway. Discussions include scrapping the <strong>12% and 28% GST slabs<\/strong> in favor of a streamlined two-tier structure: 5% for essentials and 18% for standard goods, with a higher 40% tier for sin and luxury items.<\/p>\n<p>&nbsp;<\/p>\n<p>Upcoming implementations, including simplified returns and pre-filled forms, hint at wider procedural relief aimed at reducing compliance burdens.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Welcoming the Interim Relief<\/strong><\/h2>\n<p>Meanwhile, ATMA has already endorsed the GST Council\u2019s interim decision to trim the rate on automotive tyres to 18%. Chairman Arun Mammen lauds this as a progressive relief that will lower vehicle operating costs, enhance road safety by encouraging timely <a href=\"https:\/\/www.tyremarket.com\/Car-Tyres\"><strong>tyre replacement<\/strong><\/a>, and reduce logistics expenses across the economy.<\/p>\n<p>&nbsp;<\/p>\n<p>In the end, the tyre industry\u2019s case is compelling: essential, not aspirational; utility, not indulgence. From rural roads to urban highways, tyres are mobility\u2019s backbone. Aligning GST policy with this reality could not only ease costs but catalyze enhanced road safety, operational efficiency, and fuel broader economic activity. A final decision from the GST Council could reset the sector\u2019s trajectory for long-term growth.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>About ATMA:<\/strong><\/h3>\n<p>Serving as the apex body of the <a href=\"https:\/\/www.tyremarket.com\/TyreManufacturer\"><strong>Indian tyre industry<\/strong><\/a>, the Automotive Tyre Manufacturers Association (ATMA) is headquartered in New Delhi. The organisation constitutes six major tyre companies accounting for over 90% of the tyre production in the country. ATMA acts as a vital liaison between the tyre industry and government. It actively participates in policy-making and advocates for growth, innovation, and sustainability in the sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s biggest tyre industry organisation, the Automotive Tyre Manufacturers Association (ATMA) has formally requested the Indian government to consider decreasing the Goods and Services Tax&#8230;<\/p>\n","protected":false},"author":9,"featured_media":16455,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[1106,6267,6270,6268,6269],"class_list":["post-16454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-atma","tag-gst-on-tyres","tag-gst-rationalisation","tag-lower-gst-rate","tag-tyre-industry-gst"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>GST on Tyres: Industry Seeks Lower Rate from 28% to 5% | ATMA<\/title>\r\n<meta name=\"description\" content=\"ATMA urges govt to slash GST on tyres from 28% to 5%. 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A lower rate could reduce logistics costs, aid farmers, and boost infrastructure efficiency.\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.tyremarket.com\/tyremantra\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Tyremarket : Tyre News, Review &amp; Guide\" \/>\r\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/tyremarketindia\" \/>\r\n<meta property=\"article:published_time\" content=\"2025-09-10T03:33:22+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2025-11-28T09:47:23+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.tyremarket.com\/tyremantra\/wp-content\/uploads\/2025\/09\/GST-rationalisation-Tyre-industry-seeks-lower-GST-rates.jpg\" \/>\r\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\r\n\t<meta property=\"og:image:height\" content=\"820\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\r\n<meta name=\"author\" content=\"Team Tyremarket.com\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:creator\" content=\"@tyremarketindia\" \/>\r\n<meta name=\"twitter:site\" content=\"@tyremarketindia\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Team Tyremarket.com\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\\\/\"},\"author\":{\"name\":\"Team Tyremarket.com\",\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/#\\\/schema\\\/person\\\/dfd99696ed1776bd7e812ddaa822299a\"},\"headline\":\"GST rationalisation: Tyre industry seeks lower GST rates\",\"datePublished\":\"2025-09-10T03:33:22+00:00\",\"dateModified\":\"2025-11-28T09:47:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\\\/\"},\"wordCount\":489,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/wp-content\\\/uploads\\\/2025\\\/09\\\/GST-rationalisation-Tyre-industry-seeks-lower-GST-rates.jpg\",\"keywords\":[\"ATMA\",\"GST on tyres\",\"GST rationalisation\",\"lower GST rate\",\"tyre industry GST\"],\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\\\/\",\"url\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\\\/\",\"name\":\"GST on Tyres: Industry Seeks Lower Rate from 28% to 5% | ATMA\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/gst-rationalisation-tyre-industry-seeks-lower-gst-rates\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.tyremarket.com\\\/tyremantra\\\/wp-content\\\/uploads\\\/2025\\\/09\\\/GST-rationalisation-Tyre-industry-seeks-lower-GST-rates.jpg\",\"datePublished\":\"2025-09-10T03:33:22+00:00\",\"dateModified\":\"2025-11-28T09:47:23+00:00\",\"description\":\"ATMA urges govt to slash GST on tyres from 28% to 5%. 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