Royal Enfield is hoping that the government will reduce the GST on motorcycles over 350cc. Royal Enfield has appealed to the authorities to consider lowering the GST rate on motorcycles above 350cc to have a uniform rate across all bike categories. Under the revised GST regime, motorcycles below 350cc attract a lower rate of 18%. However, motorcycles over 350cc are levied a 40% tax. “We have also appealed to the authorities even for our 450cc and 650cc, whether that can also be brought down to 18% so that there is a uniform tax rate which will really help,” the company management said. “If we lower the GST rate of more than 350cc, there is a good chance of higher volume, and we will get a scale,” the company executives added. Earlier, Royal Enfield had requested the government not to have a split duty structure, arguing that a higher levy on motorcycles above 350cc would damage a segment that it considered important to India’s global edge in the market. The company believes that a differential rate would end up shrinking the domestic 350+ cc segment and choking the investment needed for India to compete globally. It would also enable global rivals to capture the mid-size segment internationally. Source:ET Auto
