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GST to bring price cut on TVS and Royal Enfield bikes
Posted on: 26/Jun/2017 12:25:47 PM
The latest two-wheeler makers to transfer the expected GST benefit to customers are TVS Motors Company and Royal Enfield. The two are likely to cut down vehicle prices.
A rate cut up to Rs 2,300 is imposed on Royal Enfield bikes, whereas there is no clue of the quantum of price cut by TVS Motors. Royal Enfield, a part of Eicher Motors has a range of motorcycles including Bullet, Thunderbird, and Classic.
The expected reduction will be of the range Rs 1,600 to Rs 2,300 on road Chennai. This price cut will vary from state to state, said a company spokesperson. GST will ease the overall business, believes the President and CEO of TVS Motor Company K N Radhakrishnan. The benefits shall pass on to the customers, he further adds.
In most states, after the implementation of Goods and Services Tax on 1st July 2017, it is likely that the taxes on motorcycle will get reduced. However, the benefits would vary from one state to the other.
There will be 28 percent tax imposed on 2-wheelers with GST implementation. This will be lesser than total tax incidence which is of the range of 30 percent currently. There will be extra cess of about 3 percent towards motorcycles with capacity of 350 cc.
