GST on Bikes 2025: Will Bikes Become Cheaper or Costlier After September 22?

The Finance Minister has announced a major GST revision for motorcycles, impacting millions of two-wheeler buyers in India. The new GST rates will take effect from 22 September 2025, making entry-level and commuter motorcycles more affordable while increasing the tax burden on premium bikes.

GST on Two-Wheelers Below 350cc

GST reduced from 28% to 18%.

Covers 98% of the Indian motorcycle market, including scooters, mopeds, and commuter bikes.

Popular segments like 125cc and 150cc motorcycles will now become cheaper.

This move is expected to boost demand in the mass-market two-wheeler category, especially during the festive season.

What Is the New GST Rate on Motorcycles Below 350cc?

The government has reduced GST on two-wheelers below 350cc from 28% to 18%. This covers nearly 98% of bikes sold in India, including scooters and commuter motorcycles like the Hero Splendor, Honda Activa, Bajaj Pulsar, and TVS Apache.

What Is the GST on Premium Motorcycles Above 350cc?

Motorcycles with engine capacity above 350cc will now face a 40% GST rate, almost double the earlier tax. Brands such as Royal Enfield, Jawa, Triumph, Harley-Davidson, and Kawasaki are directly impacted.

Will Bikes Become Cheaper or Costlier After September 22?

Cheaper: Commuter bikes, scooters, and motorcycles under 350cc.

Costlier: Premium and luxury motorcycles above 350cc.

Industry experts believe demand for affordable bikes will rise sharply during the festive season, while premium bike sales may slow down.