GST Effect: Yamaha Marginally Drops (Two-Wheeler) Prices

In a bid to pass on GST benefits to customers, Yamaha has dropped prices across the range. Here’s the updated price list.

For those living under a rock, GST (Goods and Service Tax) is a unified tax norm brought forth by the government that aims to channel all existing taxes into one singular tax. Read here to know more about GST and its impact on two-wheelers. Under the new law, production costs for bikes are expected to drop leading to most manufacturers to pass on the benefits to customers in the form of a reduced ex-showroom price.

The previous tax structure had all two-wheelers being levied 30 per cent tax. Under the new tax rules this comes down to 28 per cent for two-wheelers having engine capacities below 350cc. The benefits have been passed on to customers via a reduction in ex-showroom prices, though the difference is marginal for most bikes in this category. For Yamaha, the reduction in price ranges from Rs 244 for the Saluto RX to Rs 1,050 for the FZ-25.

More importantly, although ex-showroom prices for two-wheelers have gone down thanks to GST, it is yet to be ascertained how much customers will stand to gain since on-road prices of bikes may still rise due to an increase in tax rates of vehicle insurance and RTO prices.