00:00Hi guys and welcome to DriveSpark and in today's video we are going to talk about a very important
00:10news that we have to share with you and that is regarding two wheelers. So bikes above the 350
00:16cc category may soon attract 40% GST in India. Now premium bikes are said to get more expensive
00:22yes or no let's find out in this video. The GST council is currently reviewing tax labs for
00:31automobiles in India and according to a report by Bike Deco one of the proposals under discussion
00:36will see motorcycle engines that are above the 350 cc segment could move to a higher tax bracket
00:43attracting almost 48% GST rate instead of the present 28%. Now currently all two wheelers in
00:50the Indian market fall under the 28% GST slab regardless of the engine size. Now the proposed
00:56change would create a new tax category for larger motorcycles aimed at premium bikes and high
01:01capacity models sold by several manufacturers. Now if this change is approved motorcycles above
01:07the 350 cc segment could see a sharp increase in price. Now this would impact models from
01:12Royal Enfield, KTM, Harley-Davidson, Triumph, Honda Big Wing, BMW Motorrad and other premium
01:19brands offering larger displacement motorcycles in the Indian market. Royal Enfield could be
01:24among the most affected manufacturers as several of its motorcycle features engine above the
01:29350 cc segment. Now the popular models like the classic 350 will narrowly escape the slab
01:34but the Himalayan 450 and all other motorcycles that are based on the 650 cc to an engine will
01:40fall within the new proposed GST rate. Other premium motorcycle manufacturers would also face a
01:45significant price increase. Now Harley-Davidson and Hero's 440cc models would qualify for a higher GST
01:52bracket. Along with Triumph's 400 series motorcycles and KTM's 390 lineup that is manufactured here in
01:58India will also fall in this bracket as well. While the BMW 310 series will escape this bracket
02:04because it obviously is below 350 cc. Now industry bodies are expected to present their views before
02:10the GST council takes a final call. Manufacturers are likely to highlight the potential impact of sale
02:16volumes given that the premium motorcycles already face high import duties along with the existing GST slab.
02:23Now if this move is cleared then it would create a sharper tax distinction between the mass market
02:29motorcycle and premium offering. Now the higher tax bracket could bring two wheelers above 350 cc in a
02:36line of luxury items. Similarly how premium cars attract additional sets over the base GST rate.
02:42However this proposal is still under discussion and no final date has been set by the council decision.
02:48Industry players remain cautious while buyers in the premium motorcycle market await a clarity on whether
02:53the price will increase or will it remain the same. So yeah it is still yet to see whether the government
03:00will increase the tax bracket for two wheelers above 350 cc segment about 40 percent from 28 percent.
03:08Well so stay tuned for more updates like this and we will surely make a video if whatever the decision
03:14has been taken by the government. If you like this video do share and subscribe and if you want to see more
03:19videos like this do follow drive spark and i will see you in the next one.
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