What are the significant tax adjustments that have been made in the motorcycle and scooter industry? The Goods and Services Tax (GST), which has taken the place of a number of other taxes that were indirectly levied on goods and services, is, without a doubt, the correct response to this question. Because of the implementation of the Goods and Services Tax (GST), the industry as a whole, including the sector that deals with two-wheelers, has been significantly impacted. And by proxy, this goes for the two wheeler insurance also. **
It is essential to keep abreast of the most recent developments in the market, including the Goods and Services Tax (GST), regardless of whether or not you intend to purchase a two-wheeler in the near future. The good news regarding the revised GST is that it has positively worked in favour of the two-wheeler market, which includes categories such as scooters, motorcycles, and other similar products. If you are curious about how the Goods and Services Tax (GST) has affected the market for two-wheelers and insurance for those vehicles, then continue reading: **
How does the goods and services tax affect a motorcycle with two wheels?
The price reduction that occurred after the GST was implemented was significant and ultimately attracted the attention of the majority of the populace. The price of these items has increased to approximately 18,000 Indian Rupees. However, the greater impact will come from the fluctuation in the prices of premium bikes. *
If the price of a premium two-wheeler vehicle is around Rs. 10,00,000, for instance, then a 1% increase in that rate would be equal to Rs. 10,000. Although this sum will be prohibitively expensive for the vast majority of people, there are some individuals who would not mind paying a higher price overall in order to make their purchase. It may also have an impact on the third party bike insurance. *
In light of the recent changes to the Goods and Services Tax (GST), what aspects of a vehicle’s purchase should be prioritised?
Before making an investment in two-wheelers, there are a number of different things to think about after the changes that were made to GST. However, manufacturers are doing their best to incorporate these changes for the betterment of their customers, and they expect that their efforts will bear fruit in the near future. Customers will find the process of purchasing two wheeler insurance and renewing their policies much less complicated as a result of this change.
Verify to see if the manufacturer will pass on the benefits of the GST or not.
Since you are now aware that the Goods and Services Tax (GST) affects a two-wheeler purchase, you should make the most of the benefits in order to receive rebates on the purchase. **
You should, by this point, have a better idea of how the Goods and Services Tax (GST) benefits everyone. Therefore, you need to do your research and investigate the insurance company thoroughly in order to factor the changes brought about by the GST into the cost of your two-wheeler insurance. **
Obtaining the assistance and direction of a trained professional is your best bet if you want to maximise the positive effects that the Goods and Services Tax (GST) can have on a two-wheeler. Utilise the assistance of the online calculator for two-wheeler insurance premiums when performing rate comparisons. And once you purchase your new insurance, don’t forget to renew your bike insurance. We hope through this article that, we’ve been able to help you understand how GST affects your bike insurance. **
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions,
limitations, terms, and conditions, please read the sales brochure/policy wording carefully
before concluding a sale.
