Purchasing a motorbike this Diwali and curious about GST implications? Here's an overview for your convenience.
The Indian government has recently introduced a revised Goods and Services Tax (GST) regime, and it's making waves in the motorcycle industry. Here's a breakdown of how the changes will affect various motorcycles and their prices.
Under the new GST regime, two-wheelers under 350 cc will attract a rate of 18%, while those above 350 cc will fall into the 40% premium bracket. This shift could narrow the appeal of big-capacity and premium motorcycles due to the price increase.
Royal Enfield, an Indian motorcycle manufacturer, is one of the brands affected by this change. Their Himalayan Raid 450, built on their innovative 450 cc platform featuring their first liquid-cooled "Sherpa" engine, will now be in the higher tax bracket, causing a significant price increase. The Himalayan 450, priced at ₹ 2.85 Lakhs, the Guerrilla 450 at ₹ 2.39 Lakhs, and the Scram 440 with a 35 kmpl mileage and a price tag of ₹ 2.08 Lakhs, will all see a rise in their prices.
The Continental GT 450 and 650, priced at ₹ 2.70 - 3 Lakhs and ₹ 3.19 Lakhs respectively, are also set to see a considerable increase under the new GST regime.
On the other hand, mass-market commuters stand to gain the most from the new GST regime. Models from Hero, Honda, Bajaj, TVS, and Royal Enfield's Classic 350 will see price reductions.
The changes in the GST regime have also affected other brands. The KTM 390 and above series, the recently launched Triumph 400s developed with Bajaj Auto, and Bajaj's Dominar 400 and Pulsar NS400Z are now subject to the 40% GST rate.
The Honda CBR650R, Africa Twin, and Gold Wing, sold through BigWing dealerships, are also affected by the 40% GST rate.
The restructured GST regime simplifies the tax structure, having three key categories. This could make the upcoming festive season the right time for buyers to consider purchasing commuter motorcycles, as prices may stabilize after the transition.
In conclusion, the new GST regime is set to reshape India's motorcycle market, with everyday commuter bikes becoming cheaper and big-capacity and premium machines becoming pricier. It's a significant change that could influence buying decisions for many motorcycle enthusiasts.
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