GST Cut to increase the sale of light commercial vehicles by 30 PC during festivals: Ashok Leyland Official

Lower rates of goods and service tax (GST) that have come into force from Monday is expected to stimulate the sale of light commercial vehicles (LCVs) by 25 to 30 percent during the festival season between September and October, said a senior official of Ashok Leyland on Tuesday.

“The switch to reduce GST rates is a historical tax reform of this century. We expect that this will lead to an increase in the LCV sales by 25 to 30 percent during the current party season between September and October compared to the same period last year,” ViPLAV Shah, head of LCV Group, told the Hinduja, here at the flagship company of the flagship company.

He said that the sale of LCV is expected to rise during the current Navratri festival and Diwali.

The new GST structure with two-slab GST (goods and services) of 5 percent and 18 percent has replaced the earlier four-rate Duty regime after the radical reform of the GST Council aimed at stimulating consumption throughout the country. This led to significant price reductions of most items for usual use, as well as small cars and commercial vehicles.

Shah further said that Ashok Leyland is expanding its activities in Central India.

“At the moment we ensure that we have a service point every 50 kilometers to help customers. We strive to have a service point every 25 kilometers in the following year,” he said.