Here's How New GST Slabs Affect Motorcycle Prices In India

Union Finance Minister Nirmala Sitharaman announced the new GST structure yesterday, with a slew of changes to the taxation for the automotive industry. While most of the clauses are reserved for the cars, the motorcycle segment has also received its long-overdue tax relaxation. Motorcycles that are powered by an engine displacing less than or equal to 350cc now boast of a reduced GST slab. Earlier it stood at 28 per cent, but has now been brought down to 18 per cent. Subsequently, models like the Hero Splendor, Bajaj Platina, and Royal Enfield Bullet 350 get marginally cheaper now.

While the motorcycles less than or equal to 350cc have received a tax cut, the motorcycles above the 350cc mark will now be taxed at 40 per cent, which were earlier taxed at 28 per cent, along with an additional cess of 3 per cent. However, now that the cess has been diluted, the final tax slab stands at 40 per cent for big bikes.

To sum it up, the smaller bikes continue with a smaller taxation. On the flip side, the bikes above the 350cc category will attract 40 per cent GST, the same as the other sin goods like alcohol and tobacco. Here are a few popular bikes that will get more expensive with the new GST regime, valid from 22nd September 2025. It must be noted that the price comparison is based on assumptions and personal expertise, and it might vary across dealerships.