New Delhi: There was an unexpected change in tax in the 56th meeting of the GST Council, after which there was a glimpse of happiness on the faces of businessmen and common people. The government has reduced the GST slab to 2. Earlier, there were 4 GST slabs across the country, but now, ow from September 22, there will be only two. The two slabs of GST will work at 18 and 5 per cent. Now the lovers of cheap bikes have a great time.
However, the lovers of luxury bikes have not got any relief. Now, instead of 28 per cent, a total of 18 per cent GST will have to be paid on cheap bikes. Meaning there is a reduction of 10 per cent. Now the prices of bikes from the showroom are also going to come down. A total of 18 per cent GST will be levied on bikes less than 350 cc. 40 per cent GST will have to be paid on more expensive bikes. A total of 5 per cent GST will be levied on electric bikes.
On which bikes will there be savings?
As soon as the new tax slab is approved, the tax burden on bikes less than 350 cc will be reduced. A total of 18 per cent GST will have to be paid on these bikes. If you buy bikes worth up to Rs 1 lakh like Hero Splendour, Honda Shine, or TVS Apache, Bajaj Pulsar and Royal Enfield’s Hunter, Bullet, Classic 350, Meteor 350, then there is a possibility of saving several thousand rupees.
According to a report, the price of all these bikes is likely to come down by Rs 10,000 to Rs 12,000. This time, during the festive season, there may be a huge crowd of customers in the auto industry. Due to the reduced power, the wheel of sales is likely to move a lot.
These bikes will become expensive.
The prices of luxury bikes are likely to increase significantly. Meaning, more GST will now have to be paid on expensive bikes above 350cc. Among these, bikes like Royal Enfield Himalayan 450, KTM Duke 390 and Triumph Speed 400 will now come under the purview of 40 per cent GST. Earlier, 31 per cent GST was levied on these bikes. The middle class has been given special attention in the GST slab.
No change in electric two-wheelers
Even with the approval of the new GST slab, there has been no change in electric bikes and scooters. Only 5 per cent GST will be levied on them as before. Among these, electric bikes like Ola Electric, Ather, TVS iQube and Bajaj Chetak Electric are still considered the lowest tax vehicles.
