Iconic motorcycle manufacturer, Royal Enfield has welcomed the Goods and Services Tax (GST), which is set to be effective from July 1, 2017.
The Chennai-based company believes that the GST will ease the overall functioning of business in many sectors including automobiles.
Royal Enfield will revise the price of its motorcycles in lieu with the upcoming GST slabs.
The statement said "Royal Enfield welcomes the Goods and Services Tax (GST) reform initiative by the Government of India. We believe that GST will transform the way business is done in India thus benefitting the economy and our customers."
Further, it said, "Royal Enfield is preemptively extending the GST benefits to its customers and is ready to implement the on-road price revision on purchases beginning 17th June 2017 on products where applicable.We are committed to delivering customer satisfaction and giving authentic, pure motorcycling experience to our community and customers."
The current tax structure is at 30 percent compared to the 28 percent based on GST. However, Royal Enfield has not confirmed if the prices of its motorcycles will be increased or the benefits will be passed on to its customers.
Royal Enfield sales are impressive and are not affected if the prices are increased or decreased. However, there will be a marginal change to the overall price of the motorcycles from Royal Enfield.