What are the humungous tax changes undergone in the sector of two-wheeler? Undoubtedly, the answer to this question has to be Goods and Services Tax (GST) which has replaced numerous taxes indirectly levied on goods and services. With the introduction of GST, every little sector including the two-wheeler sector in the industry has been significantly impacted.
Whether you’re planning to buy a two-wheeler or not, it is important to stay updated with the latest updates in the market, GST being one of them. The good news about the revised GST is that it has positively worked in favor of two-wheeler segments like scooters, motorbikes, and so forth. So if you’re wondering about the effects of GST on the two-wheeler and two wheeler insurance market, then keep reading:
What are the effects of GST on a two-wheeler?
The price drop after the introduction of GST has been massive which has eventually attracted a majority of masses. These prices have gone up to approximately Rs. 18,000. However, the change in the prices of premium bikes has a larger impact. For example, if the rate of a premium two-wheeler vehicle is around Rs. 10,00,000, then the 1% rise in it would be equal to Rs. 10,000. While this amount for a majority of people will be huge, the others wouldn’t mind the increase in the amount, at the time of purchase.
What are the things one should consider while purchasing two-wheelers after the changes in GST?
After the GST changes, there are multiple changes to be considered before making an investment in two-wheelers. However, the manufacturers are doing their best in order to incorporate these changes for the betterment of their customers. This will simplify the purchase and two wheeler insurance renewal process for the customers. Take a look:
- Confirm to check whether the manufacturer will transfer the benefits of GST or not.
- Purchase the two-wheeler insurance online
Now that you know the effects of GST on a two-wheeler, use the benefits of your changes to the fullest in order to get rebates on the purchase. By now, you must have gotten a clearer picture of how GST helps everyone. So do your homework and run a background check on the insurance company in order to incorporate the GST changes in your two-wheeler insurance rate. The best way to ensure that you make the right use of these effects of GST on a two-wheeler is by taking professional help and guidance in doing so. Take help of the online two wheeler insurance premium calculator to evaluate premium rates