With the GST (Goods and Services Tax) announcement, automakers have started passing benefits and discounts to customers. In the two-wheeler segment, Bajaj Auto has already announced price cut across its product lineup. Now, the second one to join the list is the Chennai-based bike manufacturer – Royal Enfield.
Though the company hasn’t yet revealed the new prices, it has confirmed that the new on-road prices will be applicable on purchases beginning from 17th June 2017. One must note that the GST benefits will vary across the model lineup and the State. The new GST norms will be enforced from July 1, 2017. Under the new system, the two-wheeler manufacturers will have 28% tax rate instead of 30%. Photo & Video – Royal Enfield Surf Racer & Gentleman Brat
While the bikes with engine capacity of 350cc or below will attract tax benefits, the higher capacity (over 350) motorcycles will have additional cess of 3%. The bigger bikes will increase the total tax to 31%. Therefore, all 350cc Royal Enfield motorcycles will get cheaper, and the 500cc and above RE models (such as Himalayan) will see a price hike. The products that will be benefited with the new taxation system will include Royal Enfield Bullet 350, and Royal Enfield Thunderbird 350, Royal Enfield Bullet ES and Royal Enfield Classic 350.
In an official statement, the company says “Royal Enfield welcomes the Goods and Services Tax (GST) reform initiative by the Government of India. We believe that GST will transform the way business is done in India thus benefitting the economy and our customers. Royal Enfield is preemptively extending the GST benefits to its customers and is ready to implement the on-road price revision on purchases beginning 17th June 2017 on products where applicable. We are committed to delivering customer satisfaction and giving authentic, pure motorcycling experience to our community and customers”.
