From September 22, 2025, New Gst Rule for bikes and scooties up to 350cc get GST cut from 28% to 18%, while bikes above 350cc now have 40% tax. Entry-level models become cheaper; premium bikes cost more.
⸻
What Is GST & Why It Matters for Bikes & Scooties
• GST means Goods and Services Tax. It is a tax you pay when you buy goods (like a bike or scooty) or services.
• Earlier, many bikes and scooties in India had 28% GST (plus extra cess for some) depending on engine size etc.
• The government has made new rules to change these GST rates. These rules came after a meeting of the GST Council.
When Do the Rules Start
• The new GST rule is effective from September 22, 2025.
• After that date, the prices of many bikes and scooties will change (some cheaper, some more expensive).
⸻
What Changed: New Tax Rates for Two-Wheelers
Here are the key changes:
Engine Size / Category Old Rate (GST + Cess) New GST Rate (from Sept 22, 2025)
Bikes / Scooties up to 350 cc 28% GST (plus sometimes cess etc.) 18% GST
Bikes above 350 cc (premium / high performance) 28% + some cess (often ~3% extra) 40% GST
Electric two-wheelers Remain at 5% GST 5% GST (unchanged)
⸻
What Bikes & Scooties Become Cheaper
Because of the change, many bikes and scooties will become cheaper for buyers. Here are examples:
• Commuter bikes / small engine bikes, up to 350cc, get the benefit of the reduced GST. So models like Hero Splendor, Honda Shine, Bajaj Pulsar (below 350cc versions), TVS Apache RTR (smaller engine), Yamaha FZ, Suzuki Gixxer etc will see price drop. 
• Scooties (scooter type two-wheelers) in lower engine range will also get benefit (easier to buy, lower cost for many students or daily commuters).
For example, Honda Activa, Dio, Shine, etc. will get significant price reduction. 
⸻
What Bikes Become More Expensive
Some other bikes will now cost more because of the new GST:
• Premium or large engine bikes above 350cc will attract 40% GST. That means bikes like Royal Enfield Himalayan 450, Guerrilla 450, the 650cc models like Royal Enfield Interceptor 650, Continental GT 650, etc will cost more.
• This raise in tax for high-capacity bikes is meant to be a kind of “luxury / premium” tax. Buyers of such bikes will feel the price rise clearly.
⸻
How Much Price Change (Savings / Increase)
• The tax drop from 28% to 18% can save several thousands of rupees depending on the bike’s price. Some brands are already announcing model-wise savings. 
• For example, Honda said buyers could save up to ₹18,887 on some models like Activa, Dio, Shine etc. 
• Hero MotoCorp announced savings up to ₹15,743 on some bikes and scooters in Delhi showroom prices. 
• Yamaha also will reduce prices (fully passing on the GST benefit) from September 22. 
Who Wins & Who Loses
Here are the winners and losers under the new GST rule, especially for students or people with moderate budgets.
Winners
1. Students, daily commuters, young people who buy small bikes or scooties (≤ 350cc). The bikes will be more affordable.
2. Riders in small towns / semi-urban areas — small engine bikes are popular there, so many will benefit.
3. Manufacturers of small bikes / scooters — demand likely to increase. They may sell more units.
4. Dealers — more customers may come because of lower entry cost. Sales of lower engine bikes will increase.
5. Electric two-wheeler users — unchanged 5% GST is still low, so EVs remain relatively cheaper in that sense.
Losers or Who May Be Harmed
1. Buyers of premium / large bikes (above 350cc) — price increase means they will need more money.
2. Some models of Royal Enfield and other premium brands may see reduced demand or slower sales. 
3. Dealers who have old stock of premium bikes bought under old GST / cess system — they might not get cost benefit for those stocks, but buyers expect lower prices.
4. People who expected uniform tax — there is debate about fairness because premium bikes are taxed steeply.
⸻
Why Government Did This: Reasons Behind GST Change
• To make mobility affordable for more people. Small bikes are essential in India for commuting, especially where public transport is limited.
• To simplify tax slabs. Earlier there was confusion with GST + compensation cess + different slabs. Now it is cleaner: small bikes ≤ 350cc at 18%, premium above 350cc at 40%. 
• To balance revenue: while tax drops for many bikes, the higher tax on premium bikes helps government maintain tax revenue.
• To push down pollution and encourage EVs. Cheaper small bikes may help reduce usage of older high-pollution bikes. Maintaining low 5% GST on EVs encourages adoption.
⸻
Possible Problems or Challenges
Even though many will get benefit, there are still challenges:
• Price does not always drop immediately. Dealers need to update pricing, sell old stock, adjust marketing. Some may delay passing full benefit.
• Additional costs like insurance, registration, road tax are separate. Even if GST is lower, these costs may eat up part of the saving.
• Perception and demand shift: Some people prefer premium bikes for status or performance. Higher tax may discourage that demand.
• Disappointment for those who planned to buy premium bikes expecting price drop, but now see price rise.
• Manufacturers and importers will need to replan pricing, supply chain, profit margins.
⸻
What This Means for Students
If you are a student or young buyer thinking of buying a bike or scooty:
• If you want a bike under 350cc or a scooty, waiting till after Sept 22, 2025 is a good idea. Prices will likely be lower.
• Check ex-showroom prices carefully and see if the seller has accounted for the new GST. Ask for invoices.
• Think about other costs: fuel, maintenance, insurance, parking, etc. Even if bike is cheaper, overall cost matters.
• If you want premium bike, understand that upfront cost will go up. Calculate whether the additional cost is worth the extra features.
• Consider electric two-wheelers – they might be cheaper overall in long run (less fuel, low tax, possibly subsidies).
What Changes Are Already Announced by Manufacturers
Manufacturers are already reacting:
• Honda Motorcycle & Scooter India (HMSI) has announced price cuts for many models (Activa, Dio, Shine etc) up to ~ ₹18,887 after GST cut. 
• Hero MotoCorp will reduce prices, giving full benefit of the GST cut to customers. Some models will get savings up to ~ ₹15,743 in Delhi ex-showroom. 
• Yamaha will also reduce prices from September 22 and pass on full GST benefit. Bikes like R15, FZ, MT15 will be cheaper. 
• Royal Enfield: Models under 350cc (Hunter, Classic, Meteor, Bullet, etc) will become cheaper. Models above 350cc (Himalayan 450, 650cc series etc) will become more expensive. 
⸻
Big Effects on the Two-Wheeler Market
Here are broader effects likely in the market:
• Overall sales of two-wheelers may go up by 5-6% in the coming months because many more people can afford them. 
• Shift in demand: sales of smaller bikes and scooties will increase. Premium bike market may slow down.
• More competition among manufacturers in small and mid-engine segments to attract new customers.
• Dealers could run special offers or discounts to clear old stock or attract buyers.
• Finance companies (loan providers) may see more demand, but they must handle risk well (some buyers may struggle to repay).
⸻
Examples of Bikes That Get Cheaper & Costlier
Some specific bikes and changes:
• Cheaper: Hero Splendor, Honda Shine, Royal Enfield Hunter 350, Classic 350, Meteor 350, Bullet 350, and other bikes ≤350cc. 
• Costlier: Royal Enfield Himalayan 450, Guerrilla 450, the 650cc Royal Enfield models, KTM 390 series, etc. 
⸻
Why “Scooty” (Scooters) Also Benefit
• Many scooties have engine capacity well under 350cc, so they fall in the lower tax slab (18%). This means popular scooties will get cheaper.
• Scooties are often used for city commuting, by students, women, and people who want easy rides. Lower tax helps make them more affordable.
• Lower cost of maintenance + lower GST means better overall affordability.
⸻
Summary & What Students Should Do
To sum up:
• From 22 Sept 2025, GST for bikes/scooties up to 350cc is 18% (was 28%) → good for buyers.
• Bikes above 350cc now have 40% GST → more expensive.
• EV bikes/scooties remain at 5% GST → still very favorable.
• Many manufacturers are already cutting prices, especially for small bikes and scooties.
What you should do:
1. If you plan to buy a bike or scooty, study the engine size and whether it falls under 350cc.
2. Compare prices before and after September 22 to see savings.
3. Talk to dealerships to see if they have updated prices with new GST.
4. Budget for full costs (bike price, insurance, maintenance, fuel).
5. If premium bike is your choice, check whether extra features justify extra cost.
⸻
Conclusion
The new GST rule for bikes and scooties in India is a big change. It gives relief to people who want smaller bikes or scooties. It makes entry-level bikes more affordable. But it also makes premium large bikes more expensive. For students and everyday riders, this is likely a good change. It may help more people own bikes and scooties without being burdened by very high tax.
⸻
If you like, I can also prepare a comparison chart by model (e.g. popular bikes) with old vs new prices to show exactly how much students can save.
From September 22, 2025, New Gst Rule for bikes and scooties up to 350cc get GST cut from 28% to 18%, while bikes above 350cc now have 40% tax. Entry-level models become cheaper; premium bikes cost more.
⸻
What Is GST & Why It Matters for Bikes & Scooties
• GST means Goods and Services Tax. It is a tax you pay when you buy goods (like a bike or scooty) or services.
• Earlier, many bikes and scooties in India had 28% GST (plus extra cess for some) depending on engine size etc.
• The government has made new rules to change these GST rates. These rules came after a meeting of the GST Council.
When Do the Rules Start
• The new GST rule is effective from September 22, 2025.
• After that date, the prices of many bikes and scooties will change (some cheaper, some more expensive).
⸻
What Changed: New Tax Rates for Two-Wheelers
Here are the key changes:
Engine Size / Category Old Rate (GST + Cess) New GST Rate (from Sept 22, 2025)
Bikes / Scooties up to 350 cc 28% GST (plus sometimes cess etc.) 18% GST
Bikes above 350 cc (premium / high performance) 28% + some cess (often ~3% extra) 40% GST
Electric two-wheelers Remain at 5% GST 5% GST (unchanged)
⸻
What Bikes & Scooties Become Cheaper
Because of the change, many bikes and scooties will become cheaper for buyers. Here are examples:
• Commuter bikes / small engine bikes, up to 350cc, get the benefit of the reduced GST. So models like Hero Splendor, Honda Shine, Bajaj Pulsar (below 350cc versions), TVS Apache RTR (smaller engine), Yamaha FZ, Suzuki Gixxer etc will see price drop. 
• Scooties (scooter type two-wheelers) in lower engine range will also get benefit (easier to buy, lower cost for many students or daily commuters).
For example, Honda Activa, Dio, Shine, etc. will get significant price reduction. 
⸻
What Bikes Become More Expensive
Some other bikes will now cost more because of the new GST:
• Premium or large engine bikes above 350cc will attract 40% GST. That means bikes like Royal Enfield Himalayan 450, Guerrilla 450, the 650cc models like Royal Enfield Interceptor 650, Continental GT 650, etc will cost more.
• This raise in tax for high-capacity bikes is meant to be a kind of “luxury / premium” tax. Buyers of such bikes will feel the price rise clearly.
⸻
How Much Price Change (Savings / Increase)
• The tax drop from 28% to 18% can save several thousands of rupees depending on the bike’s price. Some brands are already announcing model-wise savings. 
• For example, Honda said buyers could save up to ₹18,887 on some models like Activa, Dio, Shine etc. 
• Hero MotoCorp announced savings up to ₹15,743 on some bikes and scooters in Delhi showroom prices. 
• Yamaha also will reduce prices (fully passing on the GST benefit) from September 22. 
Who Wins & Who Loses
Here are the winners and losers under the new GST rule, especially for students or people with moderate budgets.
Winners
1. Students, daily commuters, young people who buy small bikes or scooties (≤ 350cc). The bikes will be more affordable.
2. Riders in small towns / semi-urban areas — small engine bikes are popular there, so many will benefit.
3. Manufacturers of small bikes / scooters — demand likely to increase. They may sell more units.
4. Dealers — more customers may come because of lower entry cost. Sales of lower engine bikes will increase.
5. Electric two-wheeler users — unchanged 5% GST is still low, so EVs remain relatively cheaper in that sense.
Losers or Who May Be Harmed
1. Buyers of premium / large bikes (above 350cc) — price increase means they will need more money.
2. Some models of Royal Enfield and other premium brands may see reduced demand or slower sales. 
3. Dealers who have old stock of premium bikes bought under old GST / cess system — they might not get cost benefit for those stocks, but buyers expect lower prices.
4. People who expected uniform tax — there is debate about fairness because premium bikes are taxed steeply.
⸻
Why Government Did This: Reasons Behind GST Change
• To make mobility affordable for more people. Small bikes are essential in India for commuting, especially where public transport is limited.
• To simplify tax slabs. Earlier there was confusion with GST + compensation cess + different slabs. Now it is cleaner: small bikes ≤ 350cc at 18%, premium above 350cc at 40%. 
• To balance revenue: while tax drops for many bikes, the higher tax on premium bikes helps government maintain tax revenue.
• To push down pollution and encourage EVs. Cheaper small bikes may help reduce usage of older high-pollution bikes. Maintaining low 5% GST on EVs encourages adoption.
⸻
Possible Problems or Challenges
Even though many will get benefit, there are still challenges:
• Price does not always drop immediately. Dealers need to update pricing, sell old stock, adjust marketing. Some may delay passing full benefit.
• Additional costs like insurance, registration, road tax are separate. Even if GST is lower, these costs may eat up part of the saving.
• Perception and demand shift: Some people prefer premium bikes for status or performance. Higher tax may discourage that demand.
• Disappointment for those who planned to buy premium bikes expecting price drop, but now see price rise.
• Manufacturers and importers will need to replan pricing, supply chain, profit margins.
⸻
What This Means for Students
If you are a student or young buyer thinking of buying a bike or scooty:
• If you want a bike under 350cc or a scooty, waiting till after Sept 22, 2025 is a good idea. Prices will likely be lower.
• Check ex-showroom prices carefully and see if the seller has accounted for the new GST. Ask for invoices.
• Think about other costs: fuel, maintenance, insurance, parking, etc. Even if bike is cheaper, overall cost matters.
• If you want premium bike, understand that upfront cost will go up. Calculate whether the additional cost is worth the extra features.
• Consider electric two-wheelers – they might be cheaper overall in long run (less fuel, low tax, possibly subsidies).
What Changes Are Already Announced by Manufacturers
Manufacturers are already reacting:
• Honda Motorcycle & Scooter India (HMSI) has announced price cuts for many models (Activa, Dio, Shine etc) up to ~ ₹18,887 after GST cut. 
• Hero MotoCorp will reduce prices, giving full benefit of the GST cut to customers. Some models will get savings up to ~ ₹15,743 in Delhi ex-showroom. 
• Yamaha will also reduce prices from September 22 and pass on full GST benefit. Bikes like R15, FZ, MT15 will be cheaper. 
• Royal Enfield: Models under 350cc (Hunter, Classic, Meteor, Bullet, etc) will become cheaper. Models above 350cc (Himalayan 450, 650cc series etc) will become more expensive. 
⸻
Big Effects on the Two-Wheeler Market
Here are broader effects likely in the market:
• Overall sales of two-wheelers may go up by 5-6% in the coming months because many more people can afford them. 
• Shift in demand: sales of smaller bikes and scooties will increase. Premium bike market may slow down.
• More competition among manufacturers in small and mid-engine segments to attract new customers.
• Dealers could run special offers or discounts to clear old stock or attract buyers.
• Finance companies (loan providers) may see more demand, but they must handle risk well (some buyers may struggle to repay).
⸻
Examples of Bikes That Get Cheaper & Costlier
Some specific bikes and changes:
• Cheaper: Hero Splendor, Honda Shine, Royal Enfield Hunter 350, Classic 350, Meteor 350, Bullet 350, and other bikes ≤350cc. 
• Costlier: Royal Enfield Himalayan 450, Guerrilla 450, the 650cc Royal Enfield models, KTM 390 series, etc. 
⸻
Why “Scooty” (Scooters) Also Benefit
• Many scooties have engine capacity well under 350cc, so they fall in the lower tax slab (18%). This means popular scooties will get cheaper.
• Scooties are often used for city commuting, by students, women, and people who want easy rides. Lower tax helps make them more affordable.
• Lower cost of maintenance + lower GST means better overall affordability.
⸻
Summary & What Students Should Do
To sum up:
• From 22 Sept 2025, GST for bikes/scooties up to 350cc is 18% (was 28%) → good for buyers.
• Bikes above 350cc now have 40% GST → more expensive.
• EV bikes/scooties remain at 5% GST → still very favorable.
• Many manufacturers are already cutting prices, especially for small bikes and scooties.
What you should do:
1. If you plan to buy a bike or scooty, study the engine size and whether it falls under 350cc.
2. Compare prices before and after September 22 to see savings.
3. Talk to dealerships to see if they have updated prices with new GST.
4. Budget for full costs (bike price, insurance, maintenance, fuel).
5. If premium bike is your choice, check whether extra features justify extra cost.
⸻
Conclusion
The new GST rule for bikes and scooties in India is a big change. It gives relief to people who want smaller bikes or scooties. It makes entry-level bikes more affordable. But it also makes premium large bikes more expensive. For students and everyday riders, this is likely a good change. It may help more people own bikes and scooties without being burdened by very high tax.
⸻
If you like, I can also prepare a comparison chart by model (e.g. popular bikes) with old vs new prices to show exactly how much students can save.
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