The Goods and Services Tax (GST) Council has approved a major change in tax slabs that will make entry-level two-wheelers cheaper while imposing a higher levy on bigger vehicles. The new rates will come into effect from September 22, the first day of Navratri. Two-wheelers with engine capacity below 350cc will attract 18 per cent GST, down from 28 per cent. This covers almost 98 per cent of the Indian motorcycle market. Motorcycles above 350cc, including models in the 450cc and 650cc categories, will face a 40 per cent tax described as a “Sin tax.”
New GST rates for bikes:
Bike ModelEngine CapacityCurrent Price (28% GST + 3% Cess)Expected Price (40% GST)Expected Price HikeBajaj Pulsar NS400Z373ccRs 1.92 lakhRs 2.10 lakh+Rs 18,000Bajaj Dominar 400373ccRs 2.38 lakhRs 2.60 lakh+Rs 22,000Triumph Speed T4398ccRs 1.99 lakhRs 2.18 lakh+Rs 19,000Triumph Speed 400398ccRs 2.50 lakhRs 2.73 lakh+Rs 23,000Triumph Thruxton 400398ccRs 2.74 lakhRs 3.00 lakh+Rs 26,000Triumph Scrambler 400X398ccRs 2.67 lakhRs 2.92 lakh+Rs 25,000Triumph Scrambler 400XC398ccRs 2.94 lakhRs 3.22 lakh+Rs 28,000Harley 440 ccR 2.39 lakhRs 2.61 lakh+Rs 22,000 KTM RC 390373ccRs 3.22 lakhRs 3.52 lakh+Rs 30,000KTM 390 Duke399ccRs 2.97 lakhRs 3.25 lakh+Rs 28,000KTM 390 Adventure X399ccRs 3.03 lakhRs 3.31 lakh+Rs 28,000KTM 390 Adventure399ccRs 3.67 lakhRs 4.01 lakh+Rs 34,000KTM 390 Enduro R399ccRs 3.39 lakhRs 3.71 lakh+Rs 32,000Royal Enfield Scram 440440ccRs 2.08 lakhRs 2.28 lakh+Rs 20,000Royal Enfield Himalayan 450452ccRs 2.85 lakhRs 3.12 lakh+Rs 27,000Royal Enfield Guerrilla 450452ccRs 2.39 lakhRs 2.61 lakh+Rs 22,000Royal Enfield Interceptor 650648ccRs 3.09 lakhRs 3.38 lakh+Rs 29,000Royal Enfield Continental GT 650648ccRs 3.25 lakhRs 3.55 lakh+Rs 30,000Royal Enfield Bear 650648ccRs 3.46 lakhRs 3.78 lakh+Rs 32,000Royal Enfield Super Meteor 650648ccRs 3.71 lakhRs 4.06 lakh+Rs 35,000Royal Enfield Shotgun 650648ccRs 3.67 lakhRs 4.01 lakh+Rs 34,000Aprilia RS 457457ccRs 4.23 lakhRs 4.63 lakh+Rs 40,000Aprilia Tuono 457457ccRs 3.95 lakhRs 4.32 lakh+Rs 37,000Honda NX500471ccRs 5.90 lakhRs 6.45 lakh+Rs 55,000
New GST rates for below 350 CC bikes
Bike ModelEngine CapacityCurrent Price (28% GST)Expected Price (18% GST)Expected Price CutHero Splendor Plus97.2cc₹79,096₹72,516₹6,580Honda Shine 125123.94cc₹84,493₹77,457₹7,036Bajaj Pulsar 150149.5cc₹1,10,419₹1,01,847₹8,572TVS Apache RTR 160159.7cc₹1,34,320₹1,23,822₹10,498Yamaha FZ-S Fi149cc₹1,35,190₹1,24,743₹10,447Honda CB Shine SP124.7cc₹1,64,250₹1,51,389₹12,861Bajaj Platina 110115.45cc₹71,558₹66,007₹5,551TVS Raider 125124.8cc₹1,04,000₹96,000₹8,000Hero HF Deluxe97.2cc₹73,550₹67,867₹5,683Yamaha Saluto RX110cc₹70,000₹64,583₹5,417
Popular Scooters Under 350cc (2025 GST Update)
Scooter ModelEngine CapacityCurrent Price (28% GST)Expected Price (18% GST)Expected Price CutHonda Activa 125124cc₹81,000₹74,250₹6,750TVS Jupiter 125124cc₹77,000₹70,667₹6,333Suzuki Access 125124cc₹79,500₹72,889₹6,611Hero Maestro Edge 125124cc₹76,500₹70,111₹6,389TVS NTORQ 125124.8cc₹85,000₹77,778₹7,222Honda Dio 125124cc₹72,000₹65,778₹6,222Suzuki Burgman Street 125124cc₹82,000₹75,556₹6,444Yamaha Fascino 125125cc₹76,000₹70,667₹5,333Hero Destini 125124cc₹74,500₹69,111₹5,389Aprilia SR 125124cc₹95,000₹88,148₹6,852
All prices ex-showroom
New GST Rates for cars
Petrol, LPG and CNG cars under 1,200 cc and not more than 4,000 mm in length and diesel cars up to 1,500 cc and 4,000 mm in length will now be taxed at 18 per cent instead of 28 per cent. Automobiles with higher engine capacity and length, along with racing cars, will fall under the 40 per cent bracket.
EVs remain unchanged
Electric vehicles will continue to be taxed at 5 per cent. Industry leaders said the continuation of this rate will support India’s clean mobility goals.The GST Council has moved from a four-rate structure of 5, 12, 18 and 28 per cent to a simpler framework with two main slabs — 5 per cent and 18 per cent — along with a special 40 per cent slab for select categories.(Disclaimer: All prices are based on official websites and industry sources. Please check with your nearest dealer for the exact ex-showroom price.)