India, Sept. 12 -- Ceat Ltd. expects demand for its tractor and commuter-motorcycle tyres to surge the most due to GST rate cuts, according to its chief executive officer.

"We expect sales of commuter motorcycles to go up in semi-urban and rural households, and farm sales also could go up," Arnab Banerjee told Reuters in an interview.

On 4 September, the Narendra Modi government announced GST rate cuts on hundreds of items-from soaps to small cars and motorcycles-in India's biggest indirect tax reform since the Goods and Services Tax was first introduced on 1 July 2017. The new, simplified GST structure reduces the tax of most tyres to 18% from 28% earlier, while tractor tyres will attract 5% tax versus 18% earlier. The changes are effe...