Updated 4 September 2025 at 18:42 IST
New GST Rules for Bikes: Full List of Models Getting Cheaper or Pricier
The GST Council has slashed tax on bikes up to 350cc from 28% to 18%, cutting prices of popular models like Hero Splendor, Bajaj Pulsar, and Royal Enfield Classic 350. The move is set to benefit commuters, gig workers, and boost demand in India’s two-wheeler market.
- Republic Business
- 2 min read

The Goods and Services Tax (GST) Council has rolled out a major relief for India’s two-wheeler segment, announcing a reduction in GST rates on motorcycles with engine capacity up to 350cc. The tax rate has been cut from 28% to 18%, a move that will significantly bring down prices across popular commuter and entry-level performance bikes.
Cheaper rides for millions
With motorcycles serving as the backbone of mobility in India, particularly in rural and semi-urban regions, the rate cut is expected to make bikes more affordable for a wide spectrum of buyers, as per industry analysts. From farmers and small traders to students, professionals, and daily wage earners, the reduced prices are set to ease household budgets and expand access to personal mobility.
Which bikes get cheaper?
The price revision will cover a wide range of commuter-friendly and mid-segment motorcycles, including popular models such as Hero Splendor, Honda Shine, Bajaj Pulsar (125, 150, 180, and 220F), TVS Apache RTR series, Royal Enfield Classic 350, Yamaha FZ, Suzuki Gixxer, and others. All motorcycles up to and including the 350cc bracket fall under the reduced GST slab.
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Which bikes get dearer?
On the other hand, premium motorcycles above 350cc—such as the Royal Enfield Himalayan 450, KTM 390 series, and higher-capacity imports—remain under the higher GST bracket, keeping them relatively expensive.
Boost for the two-wheeler industry
As per two-wheeler industry trackers, the move is expected to revive demand in a sector that has faced muted growth over the past two years due to rising fuel costs and inflationary pressures. By lowering the tax burden, the government aims to spur consumption while also supporting the broader automobile ecosystem—dealers, lenders, and component manufacturers.
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Published By : Avishek Banerjee
Published On: 4 September 2025 at 18:42 IST