The Government of India has implemented the new Goods and Services Tax (GST) from July 1, 2017, which has impacted the pricing of Royal Enfield bikes.
Bikes with engine capacity less than 350cc attract 28 percent, and motorcycles more than 350cc draws tax of 28 percent with an additional cess of 3 percent, making the total to 31 percent.
Royal Enfield has embraced the new tax structure and believes that GST will transform the overall functioning of business in many sectors including automobiles.
Royal Enfield product lineup includes both 350cc and 500cc bikes, and the Bullet, Thunderbird, and the Classic are available in both engine capacities. Below are the revised prices in Delhi.
Prices ex-showroom (Delhi)
| Model | Ex-Showroom | On-Road | Price Difference |
| Royal Enfield Standard 500 | Rs 165,810 | Rs 184,264 | Rs 4,500 |
| Royal Enfield Classic 500 | Rs 175,686 | Rs 195,134 | Rs 5,000 |
| Royal Enfield Thunderbird 500 | Rs 183,662 | Rs 203,913 | Rs 5,000 |
Royal Enfield 500 is powered by a 499cc, single cylinder, air-cooled, fuel injection (FI) engine churning out 27.2bhp and 41.3Nm of torque; paired to a 5-speed gearbox.
The price increase of Rs 4,500 to Rs 5,000 on Royal Enfield Bullet 500 is not substantial as we had expected to be in the range of Rs 7,000 to Rs 10,000.
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