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GST Effect: Royal Enfield Classic 350 to Cost Less, Himalayan and Others Could Cost More

Royal Enfield Classic 350. (Photo: Soddharth Safaya/News18.com)

Royal Enfield Classic 350. (Photo: Soddharth Safaya/News18.com)

Under GST, most two-wheelers will attract a tax rate of 28 percent which would be less than the current tax of around 30 percent.

Automakers across segments are offering discounts in order to provide the benefits to the customers in anticipation of the Goods and Service Tax (GST) which will roll out from July 1, 2017.

When it comes to Royal Enfield, though, the company is expected to follow suit as well. Among the motorcycles that would cost less, the Classic 350 is expected to get a price cut of about Rs 3000 after July 1, 2017.

Under GST, most two-wheelers will attract a tax rate of 28 percent which would be less than the current tax of around 30 percent.

When it comes to motorcycles with over 350cc engines, on the other hand, will also attract an additional cess of 3 percent.

This means that offerings like the Himalayan, Bullet 500, Classic 500, Thunderbird 500 and the Continental GT are expected to cost more than what they do right now.

But given that one of the most popular motorcycles that are sold by RE is the Classic 350. So much so, that it accounted for over 68 percent of RE sales in FY2017.

Also Read: Royal Enfield Himalayan Long Term Review: The All-Terrain Bike is RE's Best Yet