Is new GST reform (2.O) would be beneficial to new TVS customers ?

The new taxation regime GST 2.0 truly delivers benefits to customers of TVS Motor Company — especially for those considering buying a new two-wheeler now .This blog shows what GST 2.0 changed, how it applies to the TVS product line, the actual customer benefit, and also what to watch out for.

What is GST 2.O ?

The Indian government in 2025 rolled out the next phase of the goods and services tax reforms, branded “GST 2.0”. Some of the key features:

The previous multiple slabs (5 %, 12 %, 18 %, 28 % + various cesses) have largely been rationalised into two major slabs — 5 % and 18 % — plus a special high slab of 40 % for “sin or luxury” goods.

A wide range of everyday consumer goods, consumer durables, automobiles and vehicle components have seen their tax rate reduced. For example, consumer-durables such as televisions (previous 28 % slab) now fall into 18 %.

For the automobile sector: Two-wheelers up to 350 cc, small cars, three‐wheelers, etc., now attract 18 % GST (instead of earlier 28 % + cess) under certain conditions.

Additional reforms: Digitalisation, faster registration/refunds, stronger compliance via automation.

In short, GST 2.0 is intended to make many goods cheaper (by lowering indirect tax burden) and simplify tax structure.

How does this affect TVS Motor Company and its customers?

Let’s zoom in on TVS and see how the reform touches their product lines, and whether customers will feel the benefit.

TVS promises “pass on the full benefit of GST rate reduction” to customers across its ICE (internal combustion engine) portfolio.
The company points out that most of its ICE two-wheelers fall in the “up to 350 cc” segment which is eligible for the lower 18 % tax slab under GST 2.0.

A news piece reports specific savings: “TVS bike, scooter prices drop by up to Rs 24,310 with GST 2.0 revision”.

Which models benefit :

TVS models such as the Apache RTR 160/160 4V, Raider, Ronin, Sport, Radeon, Star City + are included in the cut.
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On the scooter side: Jupiter, Ntorq 125/150, Zest etc. saw reductions of “₹ 6,600 to ₹ 11,000” depending on variant.

Thus for many of the commuter / mid-segment two-wheelers from TVS, the tax cut is applicable.

So — Is the benefit real for new TVS customers?

YES — in many cases the benefit is real — but with caveats. Let’s break it down.

Real benefits :

Lower tax = lower ex-showroom price: Since the tax burden on many two-wheelers (≤350cc) has dropped from 28 % to 18 %, that translates into a meaningful price reduction for the buyer. TVS numbers show reductions upto ₹ 24,000. For a scooter or bike in the ₹1-3 lakh range (ex-showroom), this is a non-trivial saving.

More competitive pricing: For customers who were delaying a purchase because of cost, this tax cut may tip the cost-benefit in favour of buying now. It may also trigger more offers, better finance deals, etc.

Better affordability & demand dynamics: As TVS and the industry expect higher demand (boosted partly by the tax cut) the competitive environment may benefit buyers (promotions, stock availability)

Some exceptions for new customers :

However — some exceptions and things to check:

*Which engine size / category you are buying: The benefit applies to two-wheelers upto 350cc under the new regime for the lower slab. If you are buying a bike above 350cc (e.g., premium segment), the tax treatment is different (some bikes may fall into the 40 % slab). So if you are eyeing a “big bike”, the benefit may not apply (or may even work against you).

*How the benefit is passed on: While TVS has committed to “pass on full benefit”, in many other industries there are worries that manufacturers/dealers will absorb some benefit or adjust other costs (accessories, registration, insurance) to offset it. Some consumer forums report this concern. So buyers should check actual invoice price, any surcharges, and ensure they are getting the benefit.

*Other cost components: Ex-showroom price is just one part — on-road cost includes registration, insurance, accessories, etc. Savings from tax may be eaten up if other costs escalate.

*Timing and model-variant: The new rates became effective 22 September 2025. If you book/invoice before that date or pick up a variant not aligned to the lower rate, you may miss out. Also, dealers may try to clear old stock with different discount dynamics.

*Electric vehicles (EVs): Note that EV two-wheelers remain taxed at 5 % under earlier rules, so they didn’t get a tax cut now (they were already at a concessional rate). For EV customers of TVS (e.g., iQube) the benefit is less about tax cut now, more about existing tax advantage.

Recommendations for a prospective buyer (especially in region — Delhi / NCR) :

*Choose the right segment/model: Prioritise two-wheelers ≤ 350 cc (TVS has many such models) since these attract the lower 18 % slab. If you choose > 350 cc premium bikes, the tax situation may be less favourable.

*Check the “new” ex-showroom price: Before booking, ask the dealership for the breakdown of ex-showroom price, highlighting the tax component and confirm the adjusted price post-GST 2.0.

*Ensure benefits are passed on: Ask the dealer whether the GST reduction has been passed on in full. Some buyers report manufacturers/dealers absorbing it partly.

* Keep other costs in check: Investigate insurance, registration fees, accessories — sometimes the headline tax cut is offset by higher ‘other’ costs.

*Time your purchase: Since the new rates kicked in from 22 Sept 2025, buying after that ensures the benefit is built-in. Also, check if the dealer has old stock (pre-cut price) — sometimes old stocks may carry higher cost.

*Long-term value: Consider not just the upfront price cut but also maintenance/spare-parts cost. Under the new regime, auto parts, servicing etc may also benefit

Conclusion :

In conclusion, GST 2.0 does deliver benefits to new customers of TVS Motor Company provided you pick the right model (sub-350cc ICE two-wheeler), buy under the new regime, and ensure the benefit is passed on. TVS has committed to do so, and media reports show substantial price drops already.
But keep in mind the caveats: model eligibility, dealer pass-through, other cost components. So it’s not a guarantee that every single customer everywhere gains full savings — doing your homework still matters.