GST on Bikes: Bikes under 350 cc are set to get cheaper as the GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services
Tax (GST) regime. The GST Council's decision to simplify the tax structure by introducing 5% and 18% slabs will take effect from September 22, the first day of Navratri.
GST ON Bikes
Motorcycles up to 350 cc would be taxed at a lower GST of 18 per cent against 28 per cent currently. While motorcycles with an engine capacity exceeding 350 cc attract a GST rate of 40 per cent.Meanwhile, small vehicles, including those with petrol, LPG, or CNG engines up to 1200 cc and diesel engines up to 1500 cc, with lengths not exceeding 4000 mm, will benefit from a reduced GST rate of 18 per cent, previously 28 per cent.
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Presently, automobiles are taxed at 28 per cent, which is the highest GST slab. A compensation cess, ranging from 1 to 22 per cent, is levied on top of this rate, depending on the type of vehicle.
Though an official response from major automakers is yet to come, the move is likely to be welcomed by the industry.
