GST on Bikes 2025: Applicability, New Tax Rate, and HSN Code
- Dipali Waghmode
- Dec 4
- 6 min read
Introduction
The goods and services tax (GST), which was implemented in 2017, streamlined and harmonised India's whole indirect taxation system. All products and services, including bikes, are subject to GST, with a few exceptions. The 56th GST Council Meeting took place on September 3, 2025. This meeting, which took place in New Delhi, had a significant agenda. To support the government's goal of long-term growth, India's GST rates must be revised. The different GST rates were changed as a result. Your travel expenses, for example, would also be lower presently. The GST rate on bikes was also discussed: expensive bikes would now be subject to higher taxes according to the latest GST update.
Table of Contents
Applicability of GST on Bikes
Both new and used motorcycles are subject to the GST in India. Both electric and non-electric two-wheelers are subject to GST. Nonetheless, there are some GST exemptions for two-wheelers. Similar to other goods and services, you must create an e-way bill for the transportation of bikes valued at more than Rs. 50,000, even if the customer is not registered for GST. The destination of the items determines the location of supply for bikes or motorcycles. A tax invoice must be issued for bikes sold by registered individuals.
HSN Code for Bikes
An essential component of GST is the Harmonised System of Nomenclature, or HSN codes. By classifying various items according to their characteristics, these codes enable appropriate and consistent taxes. It would be simpler to comprehend GST and adhere to different regulations if you were familiar with the HSN codes. It would also be easier to calculate GST if you knew these codes. 8711 is the HSN code for a variety of two-wheelers, including bikes, mopeds, and scooters.
New GST on Bikes 2025
In the most recent council sessions, the GST bike rates were also updated. For example, bikes under 350 cc used to be taxed at 28%, but they are now taxed at 18%, which is 10% less. The GST rate has gone up for two-wheelers with engines larger than 350 cc. These bikes are now taxed at 40% instead of 31% (28% GST + 3% Cess). The tax on EVs is still the same, only 5%, in order to encourage the EV culture in the country.
The table below illustrates the new GST rates applicable to bikes in 2025:
Type / Engine Size
| Previous GST Rate
| New GST Rate
|
Engine < 350 cc | 28% GST | 18% GST |
Engine > 350 cc | 28% GST + 3% Cess = 31% | 40% GST |
Electric Bikes | 5% GST | 5% GST (Unchanged) |
GST Pricing Changes for Bikes and Models Post September 2025
Bikes up to 350CC
Brand
| Model
| GST Saving 2025
|
Hero | HF Deluxe | Up to 5500 |
Honda | Dio 125 | Up to 6200 |
Suzuki | Burgman Street 125 | Up to 6500 |
Bajaj | Pulsar Series | Up to 12000 |
Royal Enfield | Hunter 350 | Up to 15000 |
Royal Enfield | Classic 350 | Up to 16500 |
Yamaha | R15 | Up to 17500 |
Suzuki | Models (general) | Up to 18000 |
Royal Enfield | Meteor 350 | Up to 19000 |
Bajaj | Motorcycle (general) | Up to 20000 |
TVS | Apache RTR/RR 310 | Up to 24500 |
Bikes above 350CC
Brand
| Model
| GST Price Increase in 2025
|
Royal Enfield | Himalayan 450, Scram 450 | Up to 22000 |
Bajaj-Triumph | Speed 400, Scrambler 400 | Up to 23000 |
Royal Enfield | Interceptor 650 | Up to 24600 |
Royal Enfield | Bear 650 | Up to 25000 |
Honda | CB 350 RS, H’ness 350 | Up to 25000 |
KTM | 390 Series (Duke, ADV) | Up to 25000 |
Royal Enfield | Shotgun 650 | Up to 28000 |
Royal Enfield | Super Meteor 650 | Up to 29500 |
Royal Enfield | Continental GT 650 | Up to 30,000 |
ITC Availability on Bikes
In India, bikes are not eligible for ITC under clause 17(5)(a). There are a few exceptions, though. The following situations qualify you for an input tax credit:
If the acquired bikes are being utilised for public transportation or passenger transportation
If the purchased bikes are supplied further
If the bike is used to teach others how to operate such a vehicle.
Impact of GST on Bikes
GST levy on bikes promotes pricing transparency for consumers, but it also raises the price, particularly for vehicles with engines larger than 350cc. However, consumers who are cost-sensitive and ecologically conscious find electric bikes to be an appealing choice due to their lower GST rates. In the meantime, given the huge demand for vehicles, GST on bikes guarantees a steady revenue flow for the government. Lastly, consistent bike GST rates guarantee simplified taxation for producers. However, manufacturers may see a decline in demand for their vehicles in this market as a result of increasing taxes on high-capacity options.
Conclusion
It is crucial for potential buyers to comprehend GST on bikes in order to make wise and efficient purchases. Choosing an electric car could be the answer if you want to reduce the financial impact of your two-wheeler purchases, particularly if you have access to infrastructure for charging. In addition to lowering the cost of investment, the reduced bike GST rate on EVs can help you maintain your environmental consciousness. Additionally, you might be able to benefit from state-level incentives and reduced operating expenses if you choose electric two-wheelers.
Frequently Asked Questions
What is the GST rate on bikes?
The engine or cubic capacity (CC) of a bike or motorbike determines the Goods and Services Tax (GST) rate in India. Bikes with engines larger than 350cc are considered luxury products and are subject to a 40% GST rate, whilst bikes with engines up to 350cc are subject to an 18% GST rate.
What is the GST rate applicable to 100cc bikes?
Under the new GST reform, 100cc bikes (i.e., two-wheelers ≤350cc) are subject to an 18% GST charge.
What is the GST rate applicable to a 350cc bike?
In India, the GST rate for a 350cc bike—that is, a motorcycle with an engine size of less than 350cc—is 18%, down from 28%.
What is the GST rate applicable to bikes above 350cc?
Bikes with engines larger than 350cc will now be subject to a 40% GST rate instead of the previous ~31% (28% GST + 3% cess).
What is the GST rate for electric bikes?
In India, electric bikes have a 5% GST tax.
Is GST applicable to second-hand bike purchases?
GST under the margin plan can be applicable if the purchase is made from a dealer. Sales from one person to another are exempt.
Is GST applicable to bike loans or EMIs?
The EMI itself is not subject to GST, although banks may impose 18% GST on processing expenses.
Can we claim GST on a bike purchase?
Bikes bought in India are not eligible for GST claims. ITC is accessible, nonetheless, in the following situations:
If the bike is given further
If passengers are transported on the bike
If the bike is utilised for training
Can I claim ITC on a bike bought for business?
Generally speaking, no, unless it is utilised for passenger services, delivery, or resale.
Are electric bikes cheaper because of lower GST?
Yes, they might qualify for government subsidies, which would lower their overall cost.
What is the HSN code of a scooty?
In India, a scooter's Harmonised System of Nomenclature (HSN) code is 8711. The two-wheeler HSN code. All two-wheelers, including motorcycles, scooters, mopeds, and bicycles with an auxiliary engine, fall under category 8711.
What is the GST HSN code for bike spare parts?
In India, the GST HSN code for bike spare parts is 8714. It includes a variety of replacement parts, such as wheels, tyres, brakes, suspension, body pieces, and engine parts.
Is GST applicable to bikes imported to India?
Yes. In addition to other taxes like customs duty, imported bikes will be subject to the Goods and Services Tax. However, the engine capacity of the imported vehicle will determine the appropriate bike GST rates.
Is GST included in the ex-showroom price of a bike?
Yes. The cost to the manufacturer, dealer's commission, and GST are all included in the ex-showroom price of a bike.
