GST reduction on tyres enhance road safety, benefit consumers: ATMA

Automotive Tyre Manufacturers’ Association has hailed the Government’s decision to reduce GST rates on tyres. It is a -awaited move that will make tyres more affordable for users across all segments and contribute positively to road safety by encouraging timely tyre replacement and maintenance.

Lower GST on tyres will translate into more affordable mobility for millions of users—from farmers and small traders to transporters, motorists, and logistics operators. It will also help bring down vehicle operating costs, which in turn reduces overall logistics expenses in the economy, Arun Mammen, Chairman ATMA said in a press release.

Tyres are a critical component of mobility and are used across the entire spectrum of vehicles—trucks and buses, passenger cars, two- and three-wheelers, tractors, construction equipment, and mining vehicles.

The earlier GST rate of 28 per cent placed tyres in the highest tax slab, at par with luxury or demerit goods, even though tyres are an essential requirement for transportation, agriculture, and logistics. The reduction will provide much-needed relief to consumers and industry alike.

The reduction in GST rates on tyres will support road safety. High prices often discourage vehicle owners from timely tyre replacement, leading to extended use of worn-out tyres, which is a known risk factor for accidents. With the tax burden eased, tyre affordability will improve, encouraging motorists and fleet operators to replace tyres at the right time, thereby enhancing vehicle and passenger safety on roads, the release added.

Published on September 4, 2025