What is the Impact of GST on Bikes & Two Wheelers?

We all are aware of the term “Goods and Service Tax (GST)”.  It is an indirect tax which applies on the supply of goods and services. GST replace all indirect taxes levied on goods and services by states and Central. From 1, July 2017, the tax applies on the bikes and two-wheelers up to 350cc come down. Hence the tax rate is lower than the previous tax rate i.e, 3-5% cheaper approximately.

According to the Society of Indian Automobile Manufacturers (SIAM), the bikes which come under 350cc categories will now fall under the tax slab of 28 percent instead of 30 percent under the old tax structure. Hence the people can purchase their dream bike with the help of Bike Loan. Not everyone is capable to buy two wheeler due to financial constraints, but now one can apply for the two-wheeler loan and own their favorite bike. With the implementation of GST, the top two-wheeler manufacturing companies have slashed prices on their products as a move towards benefiting the customers.

Following are the reduction in prices due to the impact of GST on two-wheeler:

Capacity of Engine	Before GST	After GST
Below 350 CC	30%	28%
Above 350 CC	30%	31%

As per this rates, we see that the difference between the prices of two-wheelers on the basis of the engine capacity. The bikes whose engine capacity is less than 350 CC will be lower. But the prices of premium bikes will rise in states that had high VAT slabs.

The actual benefits of GST will vary from state to state which basically depends upon the pre and post GST rates. So, apply for the bike loan and calculate the two-wheeler loan EMI with the help of Bike EMI Calculator.

Also Read the interesting Topic: The Impact of GST on Bikes