GST simplified: Planning a new bike this Diwali? Here’s all you need to know

The GST Council has introduced a revised tax structure for vehicles, a move that will significantly impact motorcycle prices in India. The changes take effect from September 22, just ahead of the festive season, including Navratri, when two-wheeler demand traditionally peaks.

GST 2.0: The New Framework

The restructured regime simplifies the earlier multiple slabs into three key categories. Two-wheelers under 350 cc will now attract 18 per cent GST, while those above this capacity fall into the 40 per cent premium bracket.

Previously, motorcycles below 350 cc were taxed at 28 per cent, while larger bikes paid 31 per cent. The streamlined approach is aimed at clarity so here's everything that you should know about the new simplified GST.

Winners: Affordable Motorcycles

Mass-market commuters stand to gain the most. Models from Hero, Honda, Bajaj, and TVS will see price reductions, making daily-use bikes more accessible to Indian buyers. Even Royal Enfield’s Classic 350 escapes the higher bracket, thanks to its 349 cc engine, which keeps it eligible for the lower 18 per cent slab. For customers eyeing entry-level or commuter-focused motorcycles, this shift comes as a festive-season bonus.

Losers: High-Performance Bikes

Premium motorcycles are set to become significantly more expensive. Honda’s CBR650R, Africa Twin, and Gold Wing, sold through its BigWing dealerships, will now attract the steep 40 per cent GST rate. Bajaj’s Dominar 400 and Pulsar NS400Z are also affected, alongside the KTM 390 and above series and the recently launched Triumph 400s developed with with help of Bajaj Auto.

The biggest hit is to Royal Enfield’s larger portfolio. Models such as the Himalayan 450, Guerrilla 450, Scram 440, and the entire 650 cc range (Interceptor, Continental GT, Super Meteor, Shotgun, and Interceptor Bear) all move into the higher tax bracket, pushing up prices considerably.

The Takeaway

With GST 2.0, India’s motorcycle market faces a split. Everyday commuter bikes will become cheaper, boosting affordability for the masses, while big-capacity and premium machines will get pricier, narrowing their appeal. Buyers considering commuter motorcycles may find this festive season the right time to buy, before prices stabilize under the new regime.

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