New GST rates for bikes & scooters: From Triumph, Bullet, Harley to Bajaj, check what gets cheaper and what gets costlier

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:

New GST rates for below 350 CC bikes

Popular Scooters Under 350cc (2025 GST Update)

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.)