The Indian motorcycle landscape has shifted once again with the introduction of revised GST rules in September 2025. For the vast community of Indian bikers, whether dreaming of their first scooter or eyeing a big-capacity machine, knowing the GST on bikes 2025 and the tax landscape is vital for smart buying decisions. Let’s break down what’s changed, how much you could save, and where the real pain points are for premium bike enthusiasts.
GST 2025: What’s Changed? Understanding Bike GST Rate in India
After years of calls to rationalise taxes on two-wheelers, the GST Council’s latest reforms have redrawn the map:
- Bikes and scooters up to 350cc now attract just 18% GST, slashed from the longstanding 28%. This means popular commuters Splendour, Pulsar, Activa, Apache, and the iconic Bullet 350 are now much more affordable, with on-road savings from ₹10,000 up to ₹25,000 depending on model and city. Dealers are reporting higher footfall and a likely boom in festive sales.
- Premium motorcycles above 350cc now face a steep hike: 40% GST (up from 31%). This impacts aspirational bikes like the Royal Enfield 650 twins, KTM 390 series, Triumph Speed 400, and even international brands, making them significantly more expensive for Indian buyers.
- Electric two-wheelers remain winners on tax: at only 5% GST, continuing to support the electric bike GST India transition and the country’s shift to greener mobility.
Electric two-wheelers retain the lowest GST, at only 5%, continuing to encourage the country’s shift to greener mobility.
What Does This Mean for Your Pocket? Commuter Bike GST Savings vs. Premium Motorcycle GST Hike
Savings for Commuter Buyers
Lower bike GST rate India means bigger upfront savings, more affordable down payments and easier EMIs for millions of buyers. The popular sub-350cc segment—covering nearly 98% of India’s two-wheeler sales—is finally seeing crucial price relief just ahead of the 2025 festive season.
For long-term value, don’t forget: While commuters save upfront, running costs like tyres, routine maintenance, and essential accessories (such as Reise touring tyres) will continue to impact total cost of ownership year after year.
Example: The Classic 350 and Pulsar 150 may be up to ₹10,000–₹18,000 cheaper on-road compared to mid-2025 pricing.
Challenges for Premium Bike Enthusiasts
- Big-capacity bikes (above 350cc) now fall into the luxury tax bracket, with on-road prices rising by ₹20,000–₹35,000 or more for new models. The premium motorcycle GST hike also factors in higher insurance and finance costs, nudging many to mid-segment bikes, pre-owned options, or deals on last year’s inventory.
- Some premium riders may pause purchases, wait for festive offers, or turn to gently used big bikes for better deals.
GST 2025 Rate Table: Two-Wheelers
|
Engine CC |
Old GST Rate |
New GST Rate |
Example Models |
|
Up to 350cc |
28% |
18% |
Classic 350, Pulsar, Honda Activa |
|
Above 350cc |
31% (28+3%) |
40% |
RE 650 twins, KTM 390, Triumph 400 |
Beyond the Bike Price: GST’s Wider Impact
The new two-wheeler GST rules 2025 don’t just lower ex-showroom prices for commuters; they also make insurance premiums and EMIs more affordable. Sub-350cc buyers save on annual running costs, while premiums and service expenses on big bikes rise with their GST rate.
Smart buyers are also investing in quality safety gear from brands like ReiseMoto, pairing savings on the bike with reliable helmets, jackets, and gloves for all-over peace of mind and safer daily riding.
For an updated list of GST-adjusted two-wheeler prices, visit NDTV’s roundup. Running cost insight: Switching to long-lasting Reise tyres and regular maintenance boosts both savings and safety for the long haul.
What the Industry and Community Are Saying
Leading news sources note that these GST tweaks could give the Indian market its strongest festival season in years, at least for commuters. Dealers are upbeat for sub-350cc models but wary of a premium bike slowdown. Enthusiast forums reflect disappointment but also resilience; for many, the joy of riding a dream bike outweighs cost increases.
Final Thoughts
The new GST regime is a win for value-seeking commuters but a challenge for premium buyers. For India’s riding community, smart timing, a close eye on pricing and offers, and up-to-date research are essential for maximising savings and happiness on two wheels.
Ready to kit out your next ride? Check out the latest rider protection gear and accessories on ReiseMoto to stay safe and stylish no matter your engine size.
FAQs for New GST Rules and Your Next Bike
- How will the new GST rates affect the price of commuter bikes under 350cc?
The GST rate for bikes under 350cc has been reduced from 28% to 18%, resulting in significant price drops. This makes commuter bikes like the Classic 350, Pulsar, and Activa more affordable by up to ₹25,000, depending on model and location.
- What changes should premium motorcycle buyers expect with the new 40% GST?
Premium motorcycles above 350cc now attract a steep 40% GST, up from 31%. This increase can add ₹20,000 to ₹35,000 or more to the on-road price of popular high-capacity models, affecting affordability and financing options.
- Are electric scooters and bikes impacted differently by the new GST rules?
Yes. Electric two-wheelers continue to benefit from a low GST slab of 5%, supporting India's green mobility goals and making electric scooters and motorcycles a cost-effective choice.
- Will the GST reduction on commuter bikes lead to more offers and discounts this festive season?
Typically, GST reductions stimulate demand and prompt dealers to offer competitive discounts and EMIs. Early festive season buyers stand to gain the most before inventories tighten.
- Does the new GST affect the cost of spare parts and accessories?
Spare parts and accessories are generally taxed differently and may not see the same GST rate changes as the vehicles. It’s advisable to check the latest tariffs on specific items and plan your servicing budget accordingly.
- How can premium bike buyers mitigate the impact of higher GST?
Premium buyers can explore options such as purchasing certified pre-owned bikes, bundle deals with accessories, holiday financing schemes, or considering mid-capacity bikes just under the 350cc threshold to balance price and performance.
- Where can I calculate the new GST-inclusive on-road price for my preferred bike model?
Several GST calculators are available online, including the Protium GST Calculator. Additionally, dealerships and online platforms update pricing to reflect new slabs.
- Is the GST hike permanent or subject to review?
Currently, the 40% GST on motorcycles above 350cc is set for the fiscal year 2025. Future revisions will depend on government policy and industry feedback.
- What should new buyers keep in mind when budgeting for a bike purchase under the new GST rules?
Include GST, road tax, insurance, and accessories cost in your budget. Factor in potential higher maintenance and insurance premiums, especially for premium bikes.
- How can I get expert gear and safety accessories for my new or existing bike?
Explore the extensive ReiseMoto rider protection collection featuring helmets, jackets, gloves, and tyres tailored to Indian motorcycles and road conditions.
-Team Reisemoto
