The Goods and Services (GST) Council last week revised tax slabs for a wide range of goods across industries. The GST Council approved a two-tier GST structure allowing tax rates of 5% and 18% on various goods, compared to the existing four tax slabs. The new tax rates will come into effect from Sept. 22.
Following the GST reforms, two-wheelers are set to become more affordable. Many top brands have not started passing on the benefits of the GST rate cut to consumers with price reductions. This is expected to boost demand for the two-wheeler segment.
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Under the revised GST structure, two-wheelers with engine capacity below 350cc will now attract 18% tax, a sharp drop from 28% earlier.
However, premium bikes with engines above 350cc will see increased taxation. These models, including those in the 450cc and 650cc range, will now be taxed at 40%.
“Lower GST will reduce prices of bikes, making them more accessible to youth, professionals, and lower-middle-class households. Bikes are the primary mode of transport in rural and semi-urban India; cheaper bikes will directly benefit farmers, small traders, and daily wage earners,” the Ministry of Heavy Industries said in a press release issued on Monday.
According to the government, the auto industry supports over 3.5 crore jobs across sectors like manufacturing, sales, and maintenance. A rise in demand is expected to create new jobs in dealerships, logistics, transport services, and component-based MSMEs.
Bike Rates After GST Rate Cut
With the revised GST rate of 18% on bikes under 350cc, several popular models are set to become more affordable. The Bajaj Platina 110, with a current price of Rs 71,558, is expected to be available at Rs 66,007. TVS Motor Company has announced that it will pass on the full benefits of the reduced cost to the customers. This means that its TVS Raider 125 will see a price cut of around Rs 8,000, bringing the total cost down to Rs 96,000. Hero HF Deluxe is expected to become cheaper by Rs 5,683, which now costs around Rs 67,867.
Here's A List Of Expected Cost Of Bikes After 18% GST
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