NEW DELHI, Aug. 25 -- Finance minister Nirmala Sitharaman on Tuesday said the Goods and Services Tax (GST) Council will take up the industry's proposal to reduce tax on two-wheelers as it is neither a luxury nor demerit good. Two-wheelers currently attract 28% GST.

".she (finance minister) assured that this was indeed a good suggestion (from the industry) as this category is neither a luxury nor a sin good and hence merits a rate revision. Consequently, this will be taken up with the GST Council," Confederation of Indian Industries (CII) said in a statement.

The statement comes ahead of the Council meeting scheduled on 19 September. A tax cut in two-wheelers can spur demand ahead of the festival season, and at a time when private consum...