The Indian two-wheeler company, Royal Enfield has gleefully accepted the GST implementation, and in response to which they have unveiled a revised pricing strategy for their different models of two wheelers. According to the revised pricing strategy, the Royal Enfield Bullet and Thunderbird have received a hike in their price post-GST.
Just to elucidate the revised pricing, we need to look into new tax structure imposed on two wheelers. Under the GST, the bikes less than 350cc engine capacity attracts 28% tax while the bikes more than 350cc draws a tax of 28% plus an additional cess of 3%, making it a total of 31%.
With the effect of aforesaid changes being incorporated, prices of bikes above 350cc have seen a substantial hike. On the other hand, prices of bikes below 350cc have more or less remained same.
The Thunderbird 350cc had a pre-GST price of Rs. 1,46,403 (ex-showroom, Pune) which witnessed a meagre slide in the price of Rs 91 and the post-GST price stands at Rs. 1,46,312. However, the Thunderbird led by a 500cc engine has received a rise in the price by Rs. 2,782. The pre-GST price of Thunderbird 500cc was Rs. 1,85,630 which post GST stands at Rs. 1,88,412.
The Royal Enfield Bullet has also seen a similar effect of GST on its price. The Bullet 350cc carried a price tag of Rs.1,13,511 ( ex-showroom Pune) during the pre-GST period while the post-GST Period price of two-wheeler stood at Rs.1,13,436. When it comes the Bullet 500cc the effect of GST is quite visible with a rise in price by Rs. 2,429. The pre-GST price of the 500cc bullet was Rs.1,63,827, while the post-GST price is Rs.1,66,256. All the mentioned prices are ex-showroom, Pune.