Honda, a Japanese automaker, has announced benefits of up to nearly Rs 19,000 on its motorcycles and scooters. This move is a result of the government’s revised GST structure, which came into effect on September 22. The revised structure aims to boost consumption by offering lower taxation to consumers. Under the new structure, two-wheelers with engines below 350cc are now taxed at 18%, down from the earlier 28%.
As a result, Honda has reduced the prices of its popular models, including the Activa, Shine 125, Unicorn, and CB350, making them more affordable for consumers. The price reduction varies by model and variant. The new prices are a direct result of Honda passing on the full benefits of the revised GST rates to its customers.
However, it’s worth noting that the new 18% GST rate only applies to two-wheelers with engines below 350cc. Premium motorcycles with engines above 350cc, including models in the 450cc and 650cc range, now attract a higher GST rate of 40%. This increase in GST rate is likely to make these bikes more expensive for consumers.
Honda’s decision to pass on the benefits of the revised GST rates to its customers is expected to boost sales and increase consumer demand. The company’s move is also in line with the government’s objective of boosting consumption through lower taxation. Overall, the revised GST structure and Honda’s decision to reduce prices are likely to have a positive impact on the two-wheeler market, making it more affordable and attractive for consumers.