GST Impact on Bikes
Since the introduction of GST, several sectors have seen a benefit. One such sector is the two-wheeler industry. With the introduction of GST, the tax rate has fallen to 18% for two-wheelers with an engine capacity of less than 350 cc. Two-wheelers that come with an engine capacity of more than 350 cc, the GST is 40%. For electric two-wheelers, the GST is 5%.
Several bikes such as the Royal Enfield have seen prices fall by up to Rs.19,000. The prices willvary dependingy on the place the bike is purchased and the model. Bikes above 350 cc have also seen their prices have been affected. However, bike prices have fallen with the introduction of GST when compared to the previous tax system.
GST Rates and HSN Code
From 22 September 2025, the HSN codes and GST rates were revised for two-wheelers post the 56th GST Council meeting and are mentioned in the table below:
Engine Capacity | Old GST Rate | Old GST Rate | HSN Code |
Electric Bikes | 5% | 5% | 8711 |
Above 350 cc | 31% (28% GST plus 3% Cess) | 40% | 8711 |
Below 350 cc | 28% | 18% | 8711 |
GST Impact After GST Rate Changes
Two-Wheelers Above 350cc
Two-Wheeler | Increase in GST Price |
Royal Enfield Continental GT 650 | Up to Rs.30,000 |
Royal Enfield Super Meteor 650 | Up to Rs.29,500 |
Royal Enfield Shotgun 650 | Up to Rs.28,000 |
KTM 390 Series | Up to Rs.25,000 |
Honda CB 350 RS and H’ness 350 | Up to Rs.25,000 |
Royal Enfield Bear 650 | Up to Rs.25,000 |
Royal Enfield Interceptor 650 | Up to Rs.24,600 |
Triumph Speed 400 and Scrambler 400 | Up to Rs.23,000 |
Royal Enfield Himalayan 450 and Scram 450 | Up to Rs.22,000 |
Two-Wheelers Up to 350cc
Two-Wheeler | GST Savings |
TVS Apache RR/RTR 310 | Up to Rs.24,500 |
Bajaj | Up to Rs.22,000 |
Royal Enfield Meteor 350 | Up to Rs.19,000 |
Suzuki | Up to Rs.18,000 |
Yamaha R15 | Up to Rs.17,500 |
Up to Rs.16,500 | |
Royal Enfield Hunter 350 | Up to Rs.15,000 |
Bajaj Pulsar Series | Up to Rs.12,000 |
Suzuki Burgman Street 125 | Up to Rs.6,500 |
Honda Dio 125 | Up to Rs.6,200 |
Hero HF Deluxe | Up to Rs.5,500 |
FAQs on GST Impact on Bikes
- What is the GST that is applicable on two-wheelers that are less than 350 cc?
The GST that is applicable on two-wheelers that are less than 350 cc is 18%.
- What is the GST that is applicable on two-wheelers that are more than 350 cc?
The tax that is applicable on two-wheelers that are more than 350 cc is 40%
- What is the GST that is applicable on scooters?
Currently, the GST that is applicable on scooters is 18%.
- Can ITC be claimed on the GST that is paid to purchase a two-wheeler?
No, ITC cannot be claimed on the GST that is paid to purchase a two-wheeler.
- What was the tax rate earlier on two-wheelers that are below 350 cc?
Earlier, the tax that was levied on two-wheelers that are below 350 cc was 18%.
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