2025 Bike GST Rate Revision - Which Bikes Are Now Cheaper & Which Are More Expensive?

The Finance Minister has announced a big change in the GST rates which will have a significant impact on the Indian two-wheeler industry too, among other sectors. There’s good news and bad news for scooter and motorcycle customers, and let me start on a sweet note first. 

The GST rate on two-wheelers has been reduced from the existing 28% to 18% to all two-wheelers with engine displacement of 350cc or below. This will have a positive impact on virtually the entire two-wheeler industry as around 98% of the two-wheeler industry volumes come from segments of up to 350cc. The above was a request from the industry for many years in which the manufacturers had asked for a 18% GST rate for two-wheelers under 125 cc space. However, the Govt has taken a more positive step and ensured that all two-wheelers under 350 cc benefit from this new tax slab. The new GST tax rates come into effect from September 22. 

However on the flip side GST on bikes above 350cc has been hiked from 28% to 40%, which is a very steep increase. So if you were planning to buy a motorcycle like the KTM 390, RE 450 cc or the 650 Twins, or a Triumph 400 or an even higher displacement bike, you will have to rework your finances and this comes as a crude shock.

To go to your prefered chapter:
00:00 - 00:20 - Introduction
00:20 - 1:37 - Bikes that have become cheaper
1:37 - 3:44 - Bikes that have become expensive
3:44 - 5:59 - Clearing the confusion

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