Motorcycles over 350cc face 31 percent tax

  • Published By: Droom
  • 23 May 2017

Big bikes will pay GST of 28 percent plus 3 percent cess.

As per the Government’s new Goods and Services Tax (GST) guidelines, motorcycles that are fitted with engines larger than 350cc will attract a total tax rate of 31 percent – 28 percent GST along with a 3 percent cess. Motorcycles and mopeds will be taxed at 28 percent.

The tax rate for high-capacity motorcycles puts them in the same category as luxury yachts and private aircrafts. Big bikes won’t get any cheaper than they currently are after the introduction of the GST - tax rates are similar to the current total indirect tax rates applicable.

Owning a bike is also going to get more expensive thanks to the proposed 28 percent rate for auto components and the possible hike in the tax rate for services from 15 to 18 percent. No motorcycle manufacturers have commented on the proposed GST rates - they are still trying to figure out the impact it'll have on their bike’s pricing and sales.

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