Two-wheeler makers, TVS Motor Company and Royal Enfield, have taken a decision to pass on the GST (Good and Service Tax) benefits to their customers in the country even as the D-day of the new tax regime gets closer. The new pan-India GST will be implemented from July 1.
Although the announcement of Chennai-based niche bike maker Royal Enfield's decision to lower the prices of its range of bikes came last week, the quantum of the price revision is not known. However, we can now confirm that the prices of the Royal Enfield models will go down in the range of Rs. 1,600 to Rs. 2,300 (on-road prices Chennai). The price cut may vary from state to state.
Taxes on motorcycles are expected to reduce in most states with the implementation of GST from July 1, 2017, with the benefits varying from state to state.
Joining the list now is TVS with other companies expected to follow suit. The model wise price details of the TVS are not known yet but the announcement by TVS Motor Company president and CEO K N Radhakrishnan should come as good news to its customers. "We will be passing on the benefits to our customers."
Honda Motorcycle and Scooter India (HMSI) is also set to revise the prices of its popular models in India such as the Activa and Unicorn. The prices of the Honda models in the country would go down in the range of 3-5 percent from July 1, on the same day of the roll out of GST. Bajaj has already reduced the prices of its bikes by up to Rs. 4,500. UM Lohia Two Wheelers Pvt. Ltd, the Indian subsidiary of American motorcycle maker UM Motorcycles, has slashed the prices of its cruiser motorcycles by up to Rs. 5,700.
Under GST, two-wheelers will attract a tax rate of 28 percent, which is lower than current total tax incidence of 30 percent. However, the motorcycles with engine capacity of over 350cc will get an additional cess of 3 percent. These benefits will vary from state to state.