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How does GST affect two wheeler automobiles?

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Since GST leads to a more unified tax structure, bike manufacturers will be seen charging a uniform price across India. This means ex-showroom prices of bikes across the country will become the same. read more

To counter this, manufacturers have started doling out lucrative discounts to counter the low demand in the days leading to the advent of GST. Bajaj Auto on has reduced the prices of its motorcycles by upto Rs 4,500. Other manufacturers are expected to follow suit. Hence, many two-wheelers could get a price drop for the month of June. read more

Following the GST rollout, tax on two-wheelers has been segmented depending on the engine capacity. The GST rate for bikes and scooters with an engine displacement of less than 350cc is 28 per cent, which is two per cent less as compared to the previous rate of 30 per cent. read more

However, many states levy additional taxes, like Octroi, under the old tax structure. Introduction of GST will put an end to all such taxes, thereby leading to a small decrease in prices. Overall, the GST effect on bike prices will be really small as tax paid by the customer will be largely similar to the total indirect taxes being paid presently. read more

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