Now buying tires will be cheaper, CEAT reduced tire prices, benefits of GST cut go directly to customers

New Delhi. By improving the GST rates, the government has made the slabs of only 5 and 18 percent. The common customer of the country seems to be benefiting from this. First of all, car companies have announced huge cuts in their prices. After this, tire companies have also announced to give its benefit to the common people by reducing the prices. The country’s famous tire company CEAT Limited (CEAT) has given great relief to the customers. The company has announced to reduce the prices of all its tires to pass on the full benefits of the reduction in GST rates to the customers.

Direct benefit of GST cut to customers
CEAT Limited said on Friday that the company will pass on 100 percent of the benefits of GST reduction on tires to its channel partners and customers. Now according to the new rates, the reduced prices will be applicable in the entire country from September 22. In fact, the government has reduced the GST on new pneumatic tires from 28 percent to 18 percent, while the rate on tractor tires and tubes will be only 5 percent.

Big relief for industry and consumers
Arnab Banerjee, Managing Director and CEO of CEAT Limited, described this decision as timely and progressive. He said that the lower GST slab will benefit both the tire industry and consumers. This will make it easier to operate and maintain vehicles. Also, changing tires will also become more affordable and convenient for people. Banerjee also said that timely replacement of tires will improve road safety and increase formality and transparency in the industry.

Tire industry will get momentum
According to experts, the domestic tire industry may register a growth of 7-8 percent in this financial year. This growth will mainly come from increasing demand for tire replacement. Better environment in rural areas, seasonal demand of festivals and reduction in interest rates are expected to boost consumption. Along with this, investment by companies in capacity expansion, manufacturing efficiency and research has also increased the strength of this sector. Industry reports suggest that GST reforms will reduce inflation and increase consumer spending by up to Rs 1 lakh crore.