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GST: An Unexpected Fallout

The higher rate of the Goods and Services Tax (GST) on motorcycles above 350 cc is forcing manufacturers to downsize their 400-cc bikes to 350 cubic centimetres. There are rumours that Triumph is already testing a bored-down 350-cc version of its 400-cc line-up.

The GST Council is levying 40 per cent GST on motorcycles above 350 cc, thereby equating such motorcycles with luxury cars like the Mercedes-Benz S-Class. This is utterly ridiculous. As a result, the same thing that happened in the car industry is going to happen in the motorcycle industry—manufacturers making sub-four-metre cars to get the benefit of a lower rate of GST. These cars are made specifically for the Indian market. Similarly, motorcycle manufacturers will continue making 400-cc-plus bikes for export while selling the 350-cc versions in India.

It is heartening to see that the police are cracking down on loud aftermarket exhaust systems. They should catch those motorcycle riders who create a nuisance at night with those crack-and-bang sounds. Then we have those loudspeakers blaring out music during festivals that are far louder than any motorcycle exhaust. However, the police do not interfere because, maybe, such events are sponsored by local politicians. The law should be the same for everyone, whether it is a car with a loud exhaust system, a motorcycle, or loudspeakers. All should be equal before the law.

To curb pollution, the government of Maharashtra wants to ban bikes that are more than 15 years old in Pune and Mumbai. They conveniently turn a blind eye towards the rampant felling of trees in the name of construction and development, thus giving rise to dust and pollution. This phenomenon is the main source of pollution in all the major cities across the country.