GST Impact on Bikes
Since the introduction of GST, several sectors have seen a benefit. One such sector is the two-wheeler industry.
Earlier, the tax rate was 30%. However, with the introduction of GST, the tax rate has fallen to 28% for two-wheelers with an engine capacity of less than 350 cc. Two-wheelers that come with an engine capacity of more than 350 cc, the GST is 31%.
Several bikes such as the Royal Enfield have seen prices fall by up to Rs.7,000. The prices will vary on the place the bike is purchased and the model. Bikes above 350 cc has also seen their prices been affected. However, bike prices have fallen with the introduction of GST when compared to the previous tax system.
GST Rates
Category | GST Rate |
Two-Wheeler Insurance | 18% |
Gauge Oil Level, Brake Pads, and Clutch Cable | 28% |
Battery Charging, Consumables, and Lubricants | 18% |
Two-Wheelers - Engine Capacity more than 350 cc | 31% |
Two-Wheelers - Engine Capacity less than 350 cc | 28% |
Hero HF Deluxe
Before GST, Hero HF Deluxe's ex-showroom price was Rs.42,830 (Delhi). The displacement is 97.2cc, and now, the tax on the bike reduced by 3%-5%. With the GST tax coming into effect, the new ex-showroom price of the bike was Rs.41,545.
Hero Splendor
The Hero Splendor is a bike that has a high demand. It is affordable and fits within almost everyone's budget. Before GST, the ex-showroom price was Rs.48,280 in the national capital. Since the displacement of the bike is 97.2cc, the price was reduced by 3%-5% and was at Rs.46,349 post GST.
Hero Glamour
The displacement of Hero Glamour is 124.7cc and the ex-showroom price of the bike in Delhi was R.56,655. From 1 July 2017, the bike's price reduced by 3%-5% and the new ex-showroom price was around Rs.54,389.
Hero Passion
Before the GST implementation, the ex-showroom price of the bike was Rs.52,605 in Delhi and the engine capacity is 97.2cc. The Hero Passion comes under the beneficiary segment, and ex-showroom price post GST was around Rs.49,974.
Honda Dream Yuga
The Honda Dream Yuga comes with a 124.7cc displacement and the ex-showroom price was Rs.51,977 pre-GST. The price of the bike was reduced after the GST and was around Rs.50,418 after the introduction of GST.
Honda CB Shine
The Honda CB Shine price was Rs.56,268 and the engine capacity is 124.7cc. After the GST, the new ex-showroom price of the bike jumped and was around Rs.53,736.
Bajaj Platina
Bajaj Platina has a 100cc displacement and the ex-showroom price was Rs.45,985. The price has reduced by 3%-5% and the ex-showroom price after GST was around Rs.44,606.
Honda CB Unicorn 150
Honda CB Unicorn 150 comes with an engine capacity of 149.1cc and the ex-showroom price was Rs.70,503. The new price is around Rs.68,388.
Royal Enfield Classic 350
The Royal Enfield Classic 350 has a displacement of 346cc and before the GST, the ex-showroom price was Rs.1,34,919. Post-GST, the ex-showroom price was Rs.1,30,197.
Bajaj Pulsar
Bajaj Pulsar was Rs.92,200 and has a displacement of 220cc. After the GST, the bike's ex-showroom price was around Rs.88,512.
FAQs on GST Impact on Bikes
- What is the GST that is applicable on two-wheelers that are less than 350 cc?
The GST that is applicable on two-wheelers that are less than 350 cc is 28%.
- What is the GST that is applicable on two-wheelers that are more than 350 cc?
The tax that is applicable on two-wheelers that are more than 350 cc is 28% GST plus 3% cess%.
- What is the GST that is applicable on scooters?
Currently, the GST that is applicable on scooters is 28%.
- Can ITC be claimed on the GST that is paid to purchase a two-wheeler?
No, ITC cannot be claimed on the GST that is paid to purchase a two-wheeler.
- What was the tax rate earlier on two-wheelers that are below 350 cc?
Earlier, the tax that was levied on two-wheelers that are below 350 cc was 30%.
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