GST snag on kids' scooters holding up India's global toy hub ambitions

Beep beep. India's ambition to become a global toy hub has run into a problem—children's scooters.

- Dhirendra Kumar

The matter concerns a category called non-motorized 'mobility scooters'—the kind children zip round on, whether sitting or standing. Those fitted with lights are taxed at 18%, whereas those without lights attract only a 12% Goods and Services Tax (GST).

Indian toy manufacturers say the higher rate is arbitrary and runs counter to the government's aim of promoting domestic toy production for global markets, two people aware of the matter told Mint. The matter is being dealt with by the commerce ministry, they said.

The complaint comes even as the government aims to boost toy exports, which are set for a boost after the finalization of trade agreements with the UK, US, and EU.