Goods and Services Tax or GST was officially put in place starting 1st July in India. While it garnered a mixed reaction from various industries, the automotive industry has largely had a positive impact. The onset of GST has proven to be beneficial for four-wheelers and two-wheelers alike. For two-wheelers, the previous tax structure included Excise Duty, CST (Central Sales Tax), VAT (Value Added Tax) and NCCD (National Contingency Calamity Duty), which in total stood at 30.2 percent irrespective of categories or engine displacement. Now, with GST in place, the tax structure has been relaxed to down to 28 percent on motorcycles with engines under 350cc. However, two-wheelers with engines above 350cc will be taxed at a higher percentage of 31 percent. Yamaha’s product lineup in India consists of several two-wheelers below 350cc. The following has been the effect of GST on prices of Yamaha vehicles.
The newly launched FZ25 saw the biggest price cut of them all with a reduction of Rs 1050. While the price of the FZ25 was previously raised from its introductory price Rs 1,19,500 in January to Rs 1,20,385, the price tag has again been lowered to Rs 1,19,335, thanks to GST.
The price tag on the most popular range by Yamaha, the R15 has also seen a GST price cut of about Rs 1000, bringing the price down to Rs 1,18,838. The semi-faired Fazer too is now available at a slightly trimmed price tag of about Rs 88,000. The price tag on the FZ, the first of the FZ series in India, has been lowered by about Rs 570, and now carries a price sticker of Rs 81000.
Coming to scooters, the most popular from Yamaha’s stable, the Fascino has seen a price drop of about Rs 400, bringing the price down to Rs 54,593. Saluto and SZ are also cheaper with prices ranging between Rs 47,700 to Rs 57,300 for Saluto and Rs 67,800 to Rs 68,800 for the SZ. All prices are ex-showroom.
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