The Goods and Services tax or the GST might well be one of the more controversial moves by this government, but as far as we are concerned things seem to be working for our benefit. Starting with a slew of discounts on luxury cars, and then a few small and medium car manufacturers like Ford even passed on some discounts.
Although what we were not expecting was the bike manufacturers to join in the process. First up to announce discounts was Royal Enfield, although most of their bikes will become dearer post GST since bikes above the 350cc limit will be met with an additional 3% cess. That was followed by Bajaj and UM motorcycles who announced dealer discounts across the country, and now with just two days to go pre-GST, TVS have also hopped the bandwagon announcing discounts across their range.
Now although TVS haven’t gotten into specifics of exactly how much customers stand to benefit from the price cuts, they insist that it will be significant. TVS CEO K N Radhakrishnan insisted that the GST will improve the efficiency of their business therein allowing for some breathing room on the existing price tags.
The price cuts might be a direct result of a 2 percent rebate on the existing tax structure which will see motorcycles under 350 cc being taxed at 28% as opposed to the existing 30%.
Now the jury might still be out on the actual effectiveness of the GST but if discounts keep coming in like this, post implementation as well, you won’t find us complaining.With just two days to go for full-scale implementation, the verdict shouldn’t be too far away.