Indian Chief Classic’s price slashed by Rs. 2.21 lakh under the GST; Dark Horse receives Rs. 2.15 lakh price reduction
GST has made the premium luxury cars and bikes cheaper in India. With the car manufacturers and two-wheeler makers reducing the price across their entire portfolio in the country Indian Motorcycle too joined the bandwagon. The American premium motorcycle brand has reduced pricing of its products in the domestic market by up to Rs. 2.21 lakh to pass on the benefit of GST to the customers.
The Indian Chief Classic is not priced Rs. 2.21 lakh cheaper compared to its pre-GST pricing. Currently it is available at an ex-showroom pricing of Rs. 21.99 lakh compared to its pre-GST pricing Rs. 24.20 lakh. The Indian Chief Dark Horse too is cheaper by Rs. 2.15 lakh as the company now offers it at Rs. 21.25 lakh (ex-showroom) compared to its pre-GST pricing of Rs. 23.40 lakh.
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Pricing of the Indian Scout has been slashed by Rs. 1.76 lakh. Currently, it is available at Rs. 12.99 lakh (ex-showroom), compared to the pre-GST pricing of 14.75 lakh. The premium motorcycle manufacturer offers a range of models in different segments with engine displacements ranging between 999 cc and 1,800 cc.
Under the new tax system, two-wheelers with engine displacement below 350 cc are taxed at 28% compared to pre-GST era’s 30%. Therefore almost every two-wheeler manufacturer has reduced the pricing of the bikes and scooters by up to 2% to pass on the benefit of the GST to the customers.
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However, the motorcycles with engines displacing more than 350 cc draw 3% extra cess over and above the 28% GST taking the total tax incidence to 31%. Despite the 31% total tax amount, the premium motorcycles have benefitted from the GST, as the total tax incidence has lowered compared to the old tax structure. But, it is now sure how long the customers will enjoy this benefit, as the state governments are preparing to increase the road tax in order to offset the loss they are facing due to the merger of octroi and several local taxes in the GST.