The Goods and Services Tax (GST) effective from July 1 in India has come as a boon for those planning to buy motor scooters and bikes with lower engine capacity. At the moment, two-wheeler makers in the country are engrossed with revising prices of their offerings across the country based on the new tax rates.

Now Honda Motorcyle & Scooter India (HMSI) has slashed the prices of its range that includes popular models such as Activa and Dio. According to Yadvinder Singh Guleria, HMSI - Senior Vice President - Sales and Marketing, Honda is passing on the GST benefit to its valued customers.

Also read: GST effect on two-wheelers: Will bike and scooter prices come down?

The customers can save up to Rs. 5,500 depending on the model and the state of purchase. It is significant to note that under the GST, tax rate of the scooters and bikes with less than 350cc engine capacity attract 28 percent while bikes above 350cc engine get an additional cess of three percent. While scooters with less engine capacity are cheaper, the new tax regime makes the latter slightly expensive compared to the previous tax incidence.

Also read: GST impact: Royal Enfield Classic, Thunderbird, Bullet prices revised

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The price of Honda's popular model, Activa-i has come down to Rs. 48,059 from the previous Rs. 47,913. Aside Activa-i, the price of the Honda Activa 4G has also seen a slight drop to Rs. 50,730 as opposed to Rs. 50,846 while the third variant, Activa 125 is now priced in the range of Rs. 57,001 to Rs. 61,361. Also, Honda Dio will now be cheaper as it comes with a price tag of Rs. 49,239. In the bikes category, Honda CB Hornet 160R will now start at Rs. 81,863 (all-prices are ex-showroom Delhi).