TVS joins the community of Royal Enfield, Bajaj, Honda and UM Motorcycles to pass on the GST benefits to customers
TVS has joined the bandwagon of two-wheeler manufacturers offering GST benefits to the customers. The Hosur based company has announced discounts across its entire range to pass on the GST benefits to the buyers. Under new tax structure to be rolled out from 1st July, motorcycles with engine displacement of below 350 cc will draw a total tax incidence of 28% compared to the current 30%, leading a lowered price.
With this, the companies are preparing to pass on the benefit to the customers that will improve their sales figure too. Honda has already announced price reduction across its models within a range of 3%-5%, while the Royal Enfield, Bajaj Auto and UM Motorcycles too are offering discounts to the buyers.
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By announcing the discount, TVS just joined the fraternity. However, it is not sure, how much the discounts will be after the Goods and Services Tax rolls out from 1st July. But, expect the two-wheeler manufacturer to offer around 3%-5% discount across its product range and the discount would vary in different states.
While the motorcycles with engines displacement of below 350 cc are fetching the benefit of GST, the ones with engines bigger than 350 cc are about to become slightly pricier under the new tax system. These motorcycles will draw an additional 3% cess over and above the highest GST slab of 28%. With this, a range of models from Bajaj, Honda, Royal Enfield will be priced higher compared to their current pricing.
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Not only the motorcycles with below 350 cc engine, but large cars, SUVs, luxury cars are also becoming cheaper under the new tax structure. But, the small cars that hold the largest share in the Indian car market will become marginally pricier. However, the automakers are not that worried about the marginal price hike, as they think it won’t affect the sales.
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