Overview

• Ministers have recommended shifting to two GST slabs of 5% and 18% with an optional ~40% band for sin or ultra‑luxury goods, to be taken up by the Council next week.
• Royal Enfield executive chairman Siddhartha Lal publicly pressed for a uniform 18% GST on all two‑wheelers, warning that higher tax on bikes above 350cc would shrink a critical segment with little revenue gain.
• HSBC said a cut from 28% to 18% could reduce ICE two‑wheeler prices by roughly 7–8%, revive first‑time and replacement demand, and lift industry growth to an estimated 6–8% CAGR over FY25–FY30.
• The bank cautioned that cheaper ICE models would raise the break‑even for electric two‑wheelers in the near term, though a simpler regime could still be supportive over time.
• Automakers report buyers delaying purchases ahead of the decision, and luxury brands are seeking quick clarity to restore festive‑season momentum and preserve the 5% GST on EVs.