Helmet Manufacturers Seek GST Cut and Testing Facilities Support from Govt



Quick Summary
The Two-Wheeler Helmet Manufacturers Association, led by Rajeev Kapur, is proposing a significant overhaul to India's road safety measures. Key recommendations include reducing the GST on helmets from 18% to 5% to improve affordability and compliance, and establishing more testing facilities through institutions like IITs and NGOs to ensure safety standards. They also suggest allocating 1% of CSR funds for road safety awareness and infrastructure, and enforcing mandatory helmet provision by manufacturers nationwide.

Comprehensive Road Safety Overhaul Proposed to Combat Economic and Human Losses in India

India, plagued by a rising toll of road accidents, not only grapples with the tragic loss of lives but also endures a substantial blow to its economy, estimated at 3.14% of the GDP. In response to this pressing issue, Rajeev Kapur, President of the Two-Wheeler Helmet Manufacturers Association and MD of Steelbird Helmets, has put forth a multifaceted plan aimed at mitigating both the human and economic costs associated with road accidents.

GST Revision for Helmets

A key proposal from Kapur is the revision of the Goods and Service Tax (GST) on helmets, urging the government to reduce the current rate of 18% to 5%. Emphasizing helmets as life-saving devices, this move is deemed crucial to enhance affordability and increase overall compliance with helmet usage, particularly among the masses.

Helmet GST Cut and Testing Support Urged by Manufacturers

Testing Facility Enhancement

Kapur highlights a critical inadequacy in the current testing infrastructure for helmets in India. To rectify this, he advocates for the establishment of testing facilities by authoritative institutions such as IITs, QCI, and NGOs. This strategic step aims to streamline the testing process, ensuring that helmets adhere to necessary safety standards and are readily available in the market.

CSR Allocation for Road Safety Initiatives

In a bid to engage corporates actively in road safety initiatives, Kapur recommends allocating 1% of Corporate Social Responsibility (CSR) funds for such programs. Corporates are urged to invest in spreading road safety awareness in educational institutions, villages, and towns, along with the installation of essential infrastructure like signage, rumble strips, speed breakers, and the distribution of subsidized helmets to the lower-income groups.

Nationwide Enforcement of Helmet Usage Rules

Expressing concern over the limited enforcement of mandatory helmet usage rules, Kapur calls for a nationwide extension of Section 138 (4) (f) of the Central Motor Vehicles Rule (CMVR). According to this rule, two-wheeler manufacturers must provide BIS compliant helmets at the time of purchase. Currently enforced in only 8 states, a uniform implementation across the country is deemed imperative to instill consistent road safety practices, especially in Tier II, III cities, and village areas where compliance is notably lacking.

Conclusion

Rajeev Kapur's comprehensive recommendations, if implemented, not only seek to alleviate the immediate economic impact of road accidents on India’s GDP but also aim to cultivate a safer road culture. Aligned with India’s commitment to halve road fatalities by 2030, these proposals present a holistic approach towards creating a more secure and sustainable road environment for all citizens.

FAQ :

The proposal is to reduce the Goods and Service Tax (GST) on helmets from the current 18% to 5% to make them more affordable and encourage wider usage.

Rajeev Kapur, President of the Two-Wheeler Helmet Manufacturers Association and MD of Steelbird Helmets, is advocating for these changes.

It is proposed that authoritative institutions like IITs, QCI, and NGOs establish testing facilities to streamline the process and ensure helmets meet safety standards.

It is recommended that 1% of Corporate Social Responsibility (CSR) funds be allocated for road safety initiatives, including awareness campaigns and infrastructure improvements.

There is a call for nationwide enforcement of Section 138 (4) (f) of the Central Motor Vehicles Rule, which requires two-wheeler manufacturers to provide BIS compliant helmets at the time of purchase.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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