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GST 2.0 Overhauls Bike Taxes: 18% Below 350cc, 40% Above 350cc From Sept. 22

Industry leaders seek one rate to protect premium demand, exports.

Overview

  • The revisions take effect on 22 September 2025 and are expected to reprice the market’s entry-level and premium segments.
  • Sub-350cc motorcycles shift to an 18% GST, lowering prices for high-volume models from brands such as Royal Enfield.
  • Bikes at 350cc and above move to a 40% rate from an effective 31% earlier (28% GST plus 3% cess), lifting prices across KTM, Triumph, Bajaj and Harley-Davidson lineups.
  • Media estimates show Royal Enfield hikes of about Rs 25,650 on the Himalayan 450 and roughly Rs 27,859 on the Interceptor 650, with some 650cc models rising by more than Rs 33,000 and certain big bikes projected up to around Rs 40,000.
  • Royal Enfield’s Siddhartha Lal and Bajaj Auto’s Rajiv Bajaj have urged the GST Council for a uniform rate, warning the higher slab could slow premiumisation and weaken export competitiveness.