GST Rate Cut on Bikes

September 10, 2025
GST Rate Cut on Bikes

India’s bike enthusiasts have a reason to cheer. The GST Council’s September 2025 meeting under GST 2.0 has led to a major reduction in tax rates on two-wheelers, bringing down the prices of motorcycles and scooters across multiple brands.

This revamped GST rate cut will be effective September 22, 2025, and we can expect to reduce ex-showroom prices of two-wheelers by 5,000 to 20,000, depending on the model.

Why the Price Cut Matters

For Indians, two-wheelers were earlier taxed at 28% GST, along with a cess on higher engine capacities. Under GST 2.0, the rates have been rationalised, reducing effective tax on commuter bikes, scooters, and even premium motorcycles.

This means that personal mobility will be more affordable while also boosting sales in a segment that faced pressure due to rising input costs and fuel prices.

For millions of Indians who depend on bikes for daily commuting, the price correction is not just financial relief but also a step toward increased accessibility of personal transport.

List of Bikes & New Prices After GST Reform

Here’s a look at some of the popular models across brands and how their prices have dropped after the GST rate cut:

Brand & ModelPrevious Ex-Showroom PricePrice After GST 2.0Reduction
Yamaha R15 V4 1,87,000 1,72,500 14,500
Yamaha MT-15 V2 1,69,000 1,54,000 15,000
Hero Splendour Plus 75,000 70,000 5,000
Bajaj Pulsar 150 1,20,000 1,12,000 8,000
Royal Enfield Classic 350 2,10,000 1,97,000 13,000
Royal Enfield Bullet 350 1,73,000 1,61,000 12,000
KTM Duke 200 1,97,000 1,82,500 14,500
TVS Apache RTR 160 4V 1,30,000 1,22,000 8,000
Harley Davidson X440 2,40,000 2,25,000 15,000
Triumph Speed 400 2,33,000 2,19,500 13,500
Suzuki Access 125 83,000 78,500 4,500
BMW G 310 R 2,90,000 2,72,500 17,500

*Note: Prices are approximate ex-showroom Delhi; reductions vary by state and variant.

Suggested Read: List of Bikes That Have Become Cheaper after GST Cut

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Impact of GST Reforms on Consumers

The biggest winners are entry-level commuters and mid-range buyers, who form the bulk of India’s two-wheeler market. Models like Hero Splendor, Honda Activa, and Bajaj Pulsar are now more budget-friendly, directly benefiting students, daily wage earners, and office-goers.

In contrast, premium motorcycles like the Harley Davidson X440, Triumph Speed 400, and KTM 390 Duke now fall under the 40% GST slab, pushing their prices higher and making them less affordable.

Suggested Read: Impact of GST Reforms on Fuel Prices

Impact of GST Reforms on Industry

The rate cut of GST on bikes could spark demand for manufacturers and dealers, especially during the upcoming festive season. Tier-2 and Tier-3 cities, where price sensitivity is high, could see strong sales growth.

Analysts predict that the 5,000–20,000 reduction in these price cuts could bridge the affordability gap for many households, reviving volumes for brands across categories, from scooters to premium sports bikes.

Expert Opinions on GST & Two-Wheeler Price Cut

Industry experts note that this move in GST rates could be a game-changer for the auto sector.

While states may initially see a dip in overall GST revenue, the increase in demand and higher registrations are likely to balance collections in the long term.

Dealers expect this relief to boost showroom footfalls, with some already preparing festive offers to capture the sales momentum.

Suggested Read: GST Rate Cut on 65 Cars

Conclusion

With GST 2.0 rate cuts rolling out on September 22, 2025, bikes and scooters from brands like Yamaha, Hero, Honda, Bajaj, Royal Enfield, Triumph, Harley Davidson, and BMW are set to become more affordable; just not every product. Consumers can now save between 5,000 and 20,000 depending on the model.

For everyday commuters, it means lighter monthly budgets, and for enthusiasts, it opens the door to aspirational models at a lower price tag. The timing could not have been better, as India heads into the festive season with a much-needed boost for the auto industry.

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