With the rollout of GST 2.0 in September 2025, tax rates on two-wheelers in India have undergone a major shift.
The old 28% slab for bikes and scooters has now been rationalised to 18%, while electric two-wheelers benefit from a reduced 5% rate. These changes aim to make daily commuting more affordable and encourage wider adoption of eco-friendly vehicles.
This dynamic shift in GST rates would have a huge impact on common Indians. If you are someone looking forward to buying a decent two-wheeler for yourself or your loved ones, this could be the right time.
Read more to learn how much the GST rate is cut, across which types of wheelers and which vehicles will experience this reduction in prices.
Two-Wheelers List that will See a Price Cut
Following the GST 2.0 rate cut, many two-wheelers have confirmed price reduction, while some have been reported to increase. Here is a complete list of all the
Two-Wheelers That Got Cheaper (GST cut from 28% to 18%)
These are the bikes and scooters ≤350 cc that saw a GST cut and are now more affordable.
Honda
- Activa 110
- Dio 110
- Activa 125
- Dio 125
- Shine 100
- Shine 100 DX
- Livo 110
- Shine 125
- SP125
- CB125 Hornet
- Unicorn
- SP160
- Hornet 2.0
- NX200
- CB350 H’ness
- CB350RS
- CB350
TVS
- Scooty Zest 110
- Jupiter 110 (all variants)
- Jupiter 125 (all variants)
- Ntorq 125 (Disc, Race, Super Squad, XP, XT)
- Ntorq 150 (Standard, TFT)
- TVS Apache RR 310
Hero
- Xtreme 125R
Bajaj
- Platina 110
- ns200
- n250
- Pulsar series (≤350 cc variants)
Suzuki
- Burgman Street 125
Royal Enfield
- Hunter 350
- Classic 350
- Meteor 350
KTM
- 250 Adventure
- Duke 250
Kawasaki
- KLX 230
- Versys-X 300
- Ninja 300
Vespa
- ZX (Entry-Level)
Motorcycles That Got Costlier (from GST rate 28% to 40%)
Premium motorcycles >350 cc are now in the higher 40% GST slab.
Royal Enfield
- Interceptor 650
Harley-Davidson
- Street 750
Other Premium Bikes
- Any motorcycle with more than 350 cc engine capacity
Also Read: Top 6 Electric Scooters Around 1 Lakh
Latest GST Rates on Bikes under 350CC
The specific rates for two-wheelers are categorised primarily by engine capacity to boost affordability in the mass mobility sector while taxing premium vehicles more heavily. The revised rates became effective from September 22, 2025.
However, electric scooters and bikes will not see a direct price reduction from the tax cut, as the GST rate for Electric Vehicles (EVs) remains unchanged at 5%.
Here is the detailed classification and rate changes for two-wheelers:
| Items | Old GST (Base Rate) | New GST (Base Rate) | GST Difference (Reduced/Increased) |
| Mass Mobility Segment (Bikes 350 cc) | 28% | 18% | Reduced by 10% |
| Bikes with engine capacity up to and including 350 cc | 28% | 18% | Reduced by 10% |
| Scooters and Mopeds (typically smaller engines, 350 cc) | 28%
(Typical rate based on capacity) | 18%
(Falls under the 350 cc segment) | Reduced by 10% |
| Electric Two-wheelers (E-Bikes) | 5%
(Implied by stability) | 5% | Unchanged (The Rate was already low to promote eco-friendly transportation) |
| High-End Motorcycles (Above 350 cc) | 28%
(Plus applicable Cess, totalling approx. 31%) | 40% | Increased/Rationalised (The total tax burden increased, making premium motorcycles costlier) |
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Two-Wheelers Price Before and After GST 2.0
Here is a quick overview to help you understand GST impacts on two-wheelers:
| Category / Item | Price With GST Before GST 2.0 | Price With GST After GST 2.0 | Total Savings / Increase |
| Two-wheelers ≤350 cc (commuter bikes, scooters) | ₹1,28,000 | ₹1,18,000 | ₹10,000 saved |
| Premium Two-wheelers >350 cc (e.g., RE Interceptor, Harley-Davidson) | ₹3,20,000 | ₹3,60,000 | ₹40,000 increase |
| Electric Two-wheelers (E-scooters, E-bikes) | ₹1,34,000 | ₹1,34,000 | No change |
| Entry-level Scooters (Activa, Jupiter, etc.) | ₹85,000 | ₹78,000 | ₹7,000 saved |
| Premium Scooters (Vespa, Burgman, Ntorq 150) | ₹1,20,000 | ₹1,10,000 | ₹10,000 saved |
Smart Buying of Two-Wheelers after GST Cut
Here are some tips that can help you with your two-wheelers purchase after this GST cut:
-
- Compare Ex-Showroom vs On-Road Prices: The GST cut reduces the ex-showroom price, but the on-road cost also includes registration, insurance, and handling charges. Compare across dealers to ensure the benefit is fully passed on.
- Time Your Purchase with Festive Offers: Festive sales bring additional cash discounts, exchange bonuses, and free accessories. Combining these with the GST reduction amplifies savings on your two-wheelers purchase.
- Check State-Specific Road Tax Policies: Some states may revise road tax rates on two-wheelers in response to GST 2.0. Confirm the final payable tax with your local RTO, as this can affect the total ownership cost.
- Explore Finance Options Smartly: If you are opting for EMI, calculate affordability in advance using an EMI calculator. Interest rates differ between credit cards, dealer finance, and personal loans. A quick credit score check ensures access to better loan terms.
- Evaluate Long-Term Ownership Costs: Lower GST reduces the buying price, but maintenance, fuel, and insurance should also be factored into your budget. Shortlist models with better mileage, affordable service parts, and wider dealer networks.
- Considering Loan Options: If you have been eyeing one of these two-wheelers for a while but had to hold off because of a financial crunch, this could be your chance. Consider taking a two-wheeler loan by applying for it in a digital lending place so that you can know which lender is best for you.
Conclusion
With the tax on bikes and scooters up to 350 cc reduced from 28% to 18%, most commuters, students, and first-time buyers can now access affordable mobility. Popular models across Honda, Hero, Bajaj, TVS, and others have become cheaper, while premium motorcycles above 350 cc face a steeper 40% tax, making them costlier.
Simply put, the revised GST rates of 2025 have reshaped the two-wheelers market in India.
For consumers like you and me, this means striking a balance between budget and aspiration. While everyday scooters and commuter bikes are now more pocket-friendly, high-end motorcycles fall firmly in the luxury bracket.
Whether purchasing outright or via EMI, this GST reform creates a timely opportunity to own a two-wheelers at a lower upfront cost, especially if planned alongside festive offers and finance options.
Disclaimer: The GST rates, car categories, and price illustrations provided in this blog are based on the GST 2.0 reforms announced on 22nd September 2025. Actual on-road costs may differ depending on brand, variant, state-level taxes, insurance, and dealer policies. Readers are advised to verify the latest updates and consult authorised dealers before making a purchase decision.
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