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How Did GST Impact the Two-Wheeler Market?

How Did GST Impact the Two-Wheeler Market?

On the 1st of July 2017 people witnessed one of the biggest tax changes in the history of India. GST came into existence and replaced several indirect taxes levied on good and services. The Goods and Services Tax Law affected every sector including the two wheeler market. If you’re planning to buy a two wheeler in the future, it’s important for you to understand how GST levied on two wheelers will affect you.

The good news is that the reviewed GST levied on two wheelers, which includes scooters and motorcycles, is in favor of the mass buyers.


The roll out for the GST is divided based on the engine capacity of the two wheelers. For instance, the GST for 350cc and above two-wheelers is 31%, which is one percent more than the previous tax levied. Whereas two wheelers with a capacity less than 350cc will have to pay a GST of 28%, which is two percent less than the previously levied tax of 30%.

Based on these changes, many manufacturers have had to update the prices of their two wheelers. This is naturally why the prices of two wheelers, which are meant for the masses, have dropped comparatively. Experts say this is a good move for the economy. Bike insurance companies could also potentially see a rise in the demand of buying two wheeler insurance policies online.

How does it translate to a change in price?

The drop, in terms of price, on two-wheelers manufactured for the masses goes up to INR 18000. For people who need a two wheeler but were unsure if they could put in the extra amount, this change makes a huge difference.

When it comes to premium bikes, the one percent change makes a big impact as well. For instance, if a premium bike costs around INR 10 lakhs, then a one percent raise in that amount equals to INR 10, 000. This can be a big amount for those who were saving towards their dream bike. For others, it may still not affect their purchasing will.

Manufacturers are trying their best to ensure that their customers receive as many benefits as they can, to keep the business steady. From understanding how they can transfer the benefits of GST to their customers, to helping them buy or renew their two-wheeler insurance, manufacturers are doing all that they can in this matter.

Things to keep in mind while buying two-wheelers post GST

Now that you know the basics of the impact of GST in the two-wheeler market, make sure to learn if the manufacturer is transferring its benefits to you. Another key thing to keep in mind is to get a two wheeler insurance online that will safeguard you and protect your two-wheeler in case of an emergency or damages.


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Disclaimer :The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Insurance needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice for Travel/Health/Motor. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.

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