Too early to say. A real life on road test is awaited. However personally i think TVS has done a great in churning out good performance numbers (power and torque) from a 300cc new engine. Also the bike looks beefy and madr for true adventure.
Usually IBR planning commission members discuss and decide whenever an exception need to be created for a in-catergory bike below 350cc. But, as I said, we need to wait a little more to say whether to allow it or not.
The things is, 350 is too low a datum for a GST slab. Let it be higher, say, 700-800cc.. Makes sense that way when considering 'luxury' (in terms of the price that one is willing to pay)