What will be the GST Impact on Bikes/Two Wheelers in India?
Last Updated : Dec. 9, 2017, 4:52 p.m.
Goods and Services Tax (GST) has been implemented from July 1, 2017, is India’s most-awaited change towards strengthening its economy. GST is a destination-based tax or consumption tax rather than the origin-based tax. Post the implementation, two-wheelers will now attract a tax rate of 28 per cent which is lower than the previous total tax of around 30 per cent.
GST Impact on Bikes/Two-Wheelers
Effective from July 1, 2017, the tax on bikes and two-wheelers up to 350cc has come down and hence are going to cost 3-5% cheaper. However, motorbikes with 350cc displacement and above will attract an additional 3% cess which will result in the overall tax of 31%. The discounts on bikes after GST will depend on the bike and the State in which the two-wheeler has been bought.
GST is affecting a wide array of the commodities that a common man uses in his/her day-to-day life. So, if you are a die-hard fan of bikes or have plans to buy a bike soon, you must see what is the change in the price of the motorcycles or any two-wheeler after GST impact.
Slashed Prices on Bikes and Two-Wheelers after GST
Now that GST has entered the market, top two-wheelers companies of India have slashed prices on their products. The companies that have announced the price cut are as follows:
- Market leader Hero MotoCorp has cut prices by up to ₹1,800 on its bikes/two-wheelers depending on the model and the state from which it has been purchased.
- TVS Motor Company has recently reduced the prices of its models by up to ₹4,150 depending on the state from which the two-wheeler has been purchased.
- Honda Motorcycle and Scooter India (HMSI) has also joined hands in the slashed priced category and reduced the prices of its bikes and two-wheelers by up to ₹5,500 depending on model and state.
- Suzuki Motorcycle India and Yamaha have also reduced prices as a move towards the benefiting its customers post GST launch.
You can choose to avail an easy personal loan to bring your favorite 2 wheeler home this monsoon.
Pre and Post GST Tax rates on top 10 bikes in India
The new GST rates are based on the model of the bike or the two-wheeler and also on the state from which it will be purchased. However, as you know that the price of the bikes below 350cc displacement has come down by 3-5%, below are the top 10 best selling bikes in India with up to 350cc displacement and the difference in their prices to help you plan your budget accordingly.
Below is the table showing you the Pre and Post GST rate in the ex-showroom prices of top 10 best-selling bikes in India and the savings you will make.
| Bikes/Two-Wheelers | Displacement | Pre-GST Ex-showroom price | Assumed rate change after GST (3-5%) | Post-GST Ex-showroom price | Difference in ex-showroom price |
|---|---|---|---|---|---|
| Hero Splendor | 97.22cc | ₹48,280 | 4% | ₹46,349 (approx.) | ₹1,931 |
| Hero HF Deluxe | 97.22cc | ₹42,830 | 3% | ₹41,545 (approx.) | ₹1,285 |
| Hero Passion | 97.22cc | ₹52,605 | 5% | ₹49,974 (approx.) | ₹2,631 |
| Hero Glamour | 124.7cc | ₹56,655 | 4% | ₹54,389 (approx.) | ₹2,266 |
| Honda CB Shine | 124.7cc | ₹56,268 | 4.5% | ₹53,736 (approx.) | ₹2,532 |
| Honda Dream Yuga | 124.7cc | ₹51,977 | 3% | ₹50,418 (approx.) | ₹1,559 |
| Honda CB Unicorn 150 | 149.1cc | ₹70,503 | 3% | ₹68,388 (approx.) | ₹2,115 |
| Bajaj Platina | 100cc | ₹45,985 | 3% | ₹44,606 (approx.) | ₹1,379 |
| Bajaj Pulsar | 220cc | ₹92,200 | 4% | ₹88,512 (approx.) | ₹3,688 |
| Royal Enfield Classic 350 | 346cc | ₹1,34,919 | 3.5% | ₹1,30,197 (approx.) | ₹4,002 |
Impact of GST on Hero Splendor
Hero Splendor is one of the most demanding bikes in India as it is affordable and suits everyone’s budget. The ex-showroom price of the bike is ₹48,280 in Delhi. Since the displacement of this bike is 97.2cc, the price has come down by 3-5%. So, if the price of this bike after GST comes down by 4%, the new ex-showroom price will be ₹46,349.
Impact of GST on Hero HF Deluxe
The ex-showroom price of Hero HF Deluxe is ₹42,830 in Delhi and has the displacement of 97.2cc, the tax has been lowered by 3-5%. With the implementation of GST tax, the new ex-showroom price will be somewhere in between this range let us suppose 3%, the new ex-showroom price can hence be somewhere around ₹41,545.
Impact of GST on Hero Passion
Before GST, the ex-showroom price of Hero Passion was ₹52,605 in Delhi with 97.2cc. Since the bike comes under the beneficiary segment, the tax has decreased. If we assume that the price will be down by 5%, the new ex-showroom price will be around ₹49,974 which is great! So, you can surely save more after GST and hence enjoy your ride with Hero Passion.
Impact of GST on Hero Glamour
Hero Glamour has a displacement of 124.7cc and hence comes under the list of bikes that have become cheaper after GST. In Delhi, the ex-showroom price of Hero Glamour is ₹56,655 and from July 1, the price has come down by 3-5% let us assume 4%, the new ex-showroom price will be somewhere close to ₹54,389.
Impact of GST on Honda CB Shine
In general, the ex-showroom price of Honda CB Shine was around ₹56,268 and comes with 124.7cc displacement which makes it a competent bike. Post GST, you can surely get this amazing bike at a much lower price. Let us suppose, the price comes down by 4.5%, the new ex-showroom price will be ₹53,736 which might not look much of a difference but is surely going to make a small saving impact on your pocket.
Impact of GST on Honda Dream Yuga
Honda Dream Yuga is a great bike for the young generation who enjoy a dream-like ride. With 124.7cc displacement and the ex-showroom price of just ₹51,977, this bike is in itself a great combination of a comfortable ride within budget. But, you now have the privilege of paying even less for this bike that GST has come. Let us suppose there is a change of 3% price, the new ex-showroom price will be ₹50,418 (approx.).
Impact of GST on Honda CB Unicorn 150
Honda CB Unicorn 150 is an amazing bike with 149.1cc displacement and the ex-showroom price of ₹70,503. Let us suppose that you get to pay 3% less than the previous price, the bike will cost you just ₹68,388 (approx.) isn’t it great to pay less for your favorite bike? Well, it is time for you to now enjoy your ride.
Impact of GST on Bajaj Platina
Bajaj Platina comes with 100cc displacement feature and the ex-showroom price of pre-GST tax was ₹45,985. However, if you buy this bike from now onwards, when GST tax has been implemented, you can save 3-5% on the ex-showroom which will result in the new ex-showroom price of ₹44,606 (approx.) if the rates are down by 3% which is marginally lower but still, it is saving!
Impact of GST on Bajaj Pulsar
Bajaj Auto was the first one to announce GST discounts as soon as GST rates were announced. There were discounts of up to ₹4,500 on the bikes from CT 100 to Dominar 400 and also on Platina, Discover and Pulsar. Pre-GST, the ex-showroom price of Bajaj Pulsar 220 was ₹92,200. The bike has been one of the most chosen bikes since its launch because of its 220cc feature. So, the GST impact will lower the cost by 4%, you will be able to buy this bike at the ex-showroom price of just ₹88,512 (approx.).
Impact of GST on Royal Enfield Classic 350
Royal Enfield holds a special place in every biker’s heart as it a beautiful combination of 346cc and comfort. Before GST, the ex-showroom price of the bike was ₹1,34,919 but now that GST has come, you will pay less for the same bike. Since the bike comes under 350cc bike segment, its price has come down by 3-5%. The exact rate will depend on the state from which it will be purchased but if we suppose that the rate is 3.5%, the new ex-showroom price will be ₹1,30,197 (approx.)
