Who makes money when you buy a bike?

I have written enought about my bike buying experience. I have also written about the ownership experience. Now, I want to talk about the money. Who makes money when you buy a bike?

Triumph Speed 400 costs INR 306K on road. Here is the breakup:

Sl	Item	Cost
1	Cost of bike	180K
2	GST on bike	50K
3	Registration	50K
4	Insurance	21K
5	GST on Insurance	5K
6	Total	306K

1 + 2 is the ex showroom price
4 + 5 is the total insurance cost
1 + 2 + 3 + 4 + 5 is the onroad price
Note: The numbers are approximate.

Who gets the money?

Sl	Who gets the money?	Amount	% of total	Remarks
1	Triumph	180K	59%	Cost of bike (1)
2	Government	105K	34%	GST + Registration (2 + 3 + 5)
3	Insurance company	21K	7%	Insurance (4)
4	Total	306K

Triumph gets 180K. That is 59% of the cost of the bike. The government gets 105K. That is 34% of the cost of the bike. The insurance company gets 21K. That is 7% of the cost of the bike.

Welcome, Income taxes

I am a person paying 30% income tax. To make 306K for the bike, I actually have to earn 438K. That is 132K in taxes. Adding the 132K to the 105K, the government makes 237K.

Sl	Who gets the money?	Amount	% of total	Remarks
1	Triumph	180K	41%	Cost of bike
2	Government	237K	54%	Income tax + GST + Registration
3	Insurance company	21K	5%	Insurance
4	Total	438K

The government makes more money than Triumph!

What if you were a business owner?

If you were a business owner, buying the bike in your company name, cost of the bike (1), registration (3) and insurance (4) would be a business expense. You would not have to pay income tax on the 251K. The GST (2 + 5) of 55K would be an expense. You would get a refund of the 55K.