Chennai-based motorcycle manufacturer Royal Enfield has announced its decision to pass on the Goods and Service Tax (GST) benefits to its customers in India. The company has not provided details of model-wise price revision of the models.
Royal Enfield is the second motorcycle maker to announce price revision in the country after Bajaj Auto. Many carmakers have already slashed prices of their offerings to woo customers as buyers are waiting for prices to go down after the GST implementation. Royal Enfield said that GST benefits on the on-road prices of its motorcycles will be applicable from June 17.
More from IBTimes India: Buying burgers with a friend cost an Indian teen his life in Malaysia
"Royal Enfield welcomes the Goods and Services Tax (GST) reform initiative by the Government of India. We believe that GST will transform the way business is done in India thus benefitting the economy and our customers," read the statement of the company.
"Royal Enfield is preemptively extending the GST benefits to its customers and is ready to implement the on-road price revision on purchases beginning 17th June 2017 on products where applicable. We are committed to delivering customer satisfaction and giving authentic, pure motorcycling experience to our community and customers," it added.
More from IBTimes India: UFC Singapore live streaming: Watch Holly Holm vs Bethe Correia live online, on TV
While Royal Enfield's motorcycle like Royal Enfield Bullet 350, Royal Enfield Classic 350 Bullet ES and Royal Enfield Thunderbird 350 are expected to get price cuts, the motorcycles with engine displacement of more than 350cc are likely to see a hike in prices. Under the new tax regime, the two-wheelers will attract a tax rate of 28 percent, which is lower than the current total tax of around 30 percent. However, motorcycles with engine capacity of more than 350cc will attract an additional cess of three percent taking the total tax to 31 percent.
Two-wheeler maker Bajaj Auto has also reduced prices of its bikes by up to Rs. 4,500 with immediate effect.