GST Rate Cut on Bikes and Scooters: What Actually Got Cheaper (And What Didn’t)

suhas
By
8 Min Read

If you’ve been putting off a new bike or scooter purchase, here’s a good reason to stop waiting: the GST Council cut tax on two-wheelers under 350cc from 28% down to 18%, effective September 22, 2025. It’s a meaningful cut, and it was clearly aimed at making everyday mobility cheaper and giving the two-wheeler market a nudge.

Bajaj Auto, Honda HMSI, Royal Enfield, and TVS Motor Company all said they’d pass the full benefit on to buyers. Most others followed shortly after with their own price cuts, though not everyone moved at the same pace.

Here’s what changed, roughly what it means in rupees, and — the part a lot of coverage conveniently skipped — which bikes actually got more expensive.

Quick disclaimer: this is general information, not tax or financial advice. Figures below are approximate, based on manufacturer announcements around the time of writing, and things can change. Confirm current on-road pricing with your dealer before you buy.

What actually changed

The 56th GST Council meeting, held September 3, 2025, revised two-wheeler tax rates like this:

Vehicle typeOld GST rateNew GST rateEffective from
bikes ≤350cc28%18% (down 10 points)Sept 22, 2025
bikes >350cc~31% (28% + cess)40% (up roughly 9 points)Sept 22, 2025
Electric bikes and scooters5%5% (unchanged)

Notice that last row up top before we get into the good news — bikes above 350cc technically got more expensive under the new structure, even though basically none of the headlines mentioned it. We’ll come back to that.

What got cheaper (under 350cc)

TVS Motors

TVS — cuts of up to roughly ₹25,000

TVS passed on the full benefit across the board, with the biggest cuts landing on the Apache RTR 310 and RR 310.

TVS modelApproximate price cut
Apache RTR 310Up to ~₹24,300
Apache RR 310Up to ~₹24,500
Apache RTR 160 4V~₹8,000–₹10,000
Apache RTR 200 4V~₹12,000–₹15,000
NTorq 125~₹7,200 (about 8.5%)
Jupiter 125~₹8,000–₹10,000
Raider 125~₹7,000–₹9,000
Ronin~₹10,000–₹12,000
XL100 / Sport / Star City~₹5,000–₹7,000

TVS’s electric line (iQube, Orbiter) stays at 5% GST — no change there, obviously.

Royal Enfield

Royal Enfield — cuts of up to roughly ₹22,000 on 350cc bikes

RE’s 350cc range, which is honestly most of what they sell, got some real cuts:

Royal Enfield modelApproximate price cut
Classic 350Up to ~₹22,000
Bullet 350Up to ~₹20,000
Hunter 350Up to ~₹18,000
Meteor 350Up to ~₹20,000
Guerrilla 450Up to ~₹22,000
Himalayan 450Up to ~₹20,000
Shotgun 650Up to ~₹15,000
Super Meteor 650Up to ~₹15,000

The 650 twins (Interceptor, Continental GT) saw smaller relative savings since they sit right near the 350cc line where the higher slab starts — worth a call to your dealer for exact numbers.

Honda Bikes

Honda HMSI — cuts of up to roughly ₹18,800

Honda modelApproximate price cut
Activa 6G~₹10,000–₹12,000
Shine 125~₹8,000–₹10,000
Unicorn 160~₹12,000–₹14,000
SP 160~₹12,000–₹14,000
CB350 H’Ness~₹18,000–₹18,800
Hornet 2.0~₹12,000–₹15,000

Honda’s EVs (Activa e:, Elevate Electric) stay at 5%, no change.

bajaj

Bajaj Auto — roughly ₹5,000 to ₹15,000 off

Bajaj stacked some festive offers on top of the GST savings around launch, so the total saving looks a bit bigger for some models:

Bajaj modelApproximate saving (GST + offers)
Pulsar N160~₹10,000–₹12,000
Pulsar NS125~₹12,200 (including festive offer)
Pulsar 150~₹8,000–₹10,000
Pulsar N250~₹12,000–₹15,000
Avenger 220~₹10,000–₹12,000
CT100 / Platina~₹5,000–₹7,000
hero bikes

Hero MotoCorp — up to roughly ₹13,500 off

Hero modelApproximate price cut
Splendor Plus~₹7,000–₹9,000
HF Deluxe~₹5,000–₹7,000
Xtreme 160R~₹10,000–₹12,000
Xtreme 125R~₹8,000–₹10,000
Super Splendor~₹8,000–₹10,000
Passion Pro~₹7,000–₹9,000
suzuki and yamaha

Suzuki and Yamaha

ModelApproximate price cut
Suzuki Gixxer SF 250~₹18,000
Suzuki Gixxer 155~₹10,000–₹12,000
Suzuki Access 125~₹8,000–₹10,000
Yamaha R15 V4~₹12,000–₹15,000
Yamaha FZ-S Fi~₹10,000–₹12,000
Yamaha MT 15 V2~₹12,000–₹14,000

What got more expensive (above 350cc)

This is really the part buyers of bigger bikes should pay attention to, since it barely got covered anywhere. Bikes above 350cc now fall under 40% GST, up from roughly 31%. On paper:

ModelImpact
KTM 390 Duke / 390 AdventureMore expensive
Royal Enfield Interceptor 650Held steady — RE absorbed the hike
Royal Enfield Continental GT 650Held steady — RE absorbed the hike
Kawasaki Versys 650More expensive
Triumph Speed 400 (349cc)Actually falls under ≤350cc — cheaper
Triumph Scrambler 400XAlso under ≤350cc — cheaper
BMW R 1300 GSMore expensive
Ducati Panigale V4More expensive
Norton Manx R (1,200cc)Falls under the 40% slab

A few premium brands, RE included on its 650 twins, just ate the increase rather than raising prices. So don’t assume every big bike got pricier — worth a direct check with the brand and dealer instead of guessing.

What this means if you’re actually buying

If you’re shopping under 350cc, this is about as good a window as India’s seen in a while — figure on roughly ₹8,000-22,000 cheaper than before September 2025. If it’s a 350cc Royal Enfield specifically, the Classic 350, Hunter 350, and Himalayan 450 are all down roughly ₹18,000-22,000, which is a real saving, not a rounding error.

Above 350cc, prices are technically higher under the new slab, though several brands absorbed some or all of it — get a proper on-road quote rather than assuming either way. And if you’re going electric, nothing’s really changed — EVs were already at 5% GST and remain the cheapest two-wheelers to own by a wide margin.

A rough example, so the numbers actually mean something

Take the Classic 350 at roughly ₹1,87,000 ex-showroom before the change. Under the old 28% GST, a bigger chunk of that price was tax. Under 18%, that chunk shrinks — net saving lands around ₹18,000-22,000 ex-showroom, and slightly more once you factor in registration and insurance getting recalculated off the lower base price.

Rough rule of thumb: a ₹1.5 lakh bike saves you somewhere around ₹8,000-12,000. A ₹2 lakh-plus bike, closer to ₹15,000-22,000.

electric bikes

And electric scooters?

They stay put at 5% GST, which was already the lowest rate around, so this particular change doesn’t move the needle for them directly. But between low running costs (roughly ₹0.30-0.50 per km against ₹2.50-3.50 for petrol), the PM E-DRIVE subsidy still being available, and no mandatory PUC requirement, EVs are still the cheapest thing to actually own and run day to day — GST cut or no GST cut.

Share This Article
Leave a Comment