Benefits From GST To Be Passed By Motorcycle Manufacturers To Their Customers

When people see you riding a Honda motorbike, the first impression is you are a person on an adventure. From the point of view of the motorbike rider, the feeling is more of freedom and independence and getting home sooner without being frustrated by traffic. Motorbikes are also associated with financial benefits because the two-wheeled vehicle is certainly more fuel efficient than a car.

In India, the Goods and Services Tax (GST) which will replace the multiple cascading taxes that are being levied by the central and state government is expected to benefit motorcycle manufacturers. In fact, TVS Motor Company and Royal Enfield, two of India’s motorbike manufacturers, are passing the expected benefits from GST to customers by lowering the prices of their motorbikes.

Royal Enfield has reduced the prices of some of its models by up to 2,300 rupee while TVS Motors has not yet disclosed any price cut on its product portfolio. Price reduction for the on-road Chennai is expected to be 1,600 to 2,300 rupee. However, the price reduction will vary from state to state.

The general perception regarding GST is the relative ease of doing business that will generate benefits which can be passed on to consumers. It is expected that the taxes on motorcycles will be reduced in most states because of the implementation of the GST last July 01, 2017. Even if the benefits vary from state to state, most of the two-wheelers will attract a tax rate of 28% which is lower than the total tax incidence of about 30%.

Meanwhile, motorcycles that have engine capacity of more than 350cc are expected to attract an additional tax of 3%. Bajaj Auto and UM Lohia Two-Wheelers have already announced that they will pass on the benefits of GST to their customers through a reduction in prices.

On the other hand, if you have a true adventure spirit, the best choice will be a Honda motorbike that has passed tests for quality and durability with flying colours. You can explore a wide range of Honda motorbikes from your dealer in the UK. Excellent customer service is guaranteed whether you are new customer or one of the loyal customers of the dealership.

Post Author: gerardksmith