New Delhi: The GST Council is considering major changes that could bring relief to small two-wheeler buyers but add a burden on premium bike owners. Under the proposal, motorcycles and scooters with engine capacity below 350cc—currently taxed at 28% GST—may soon fall under the 18% slab, making them more affordable. Industry experts say this move will benefit the middle class, as nearly 97% of two-wheelers sold in India fall into this category.
🚨 Big Bikes May Get Costlier!
Govt mulling 40% GST on motorcycles above 350cc
👉 Most Affected:
⚡ Eicher Motors (Royal Enfield – ~85% market share)
⚡ Bajaj Auto (KTM, Triumph, Dominar)
👉 Limited Impact: Hero MotoCorp (X440 only)#GST #RoyalEnfield #BajajAuto #HeroMotoCorp pic.twitter.com/p8StAybcoz— FinPixie (@FinPixie) August 27, 2025
In contrast, premium motorcycles above 350cc may face a steep tax hike. At present, these bikes attract 28% GST plus a 3% cess, totaling 31%. The government now proposes to raise GST on this category to 40%, classifying them as luxury items. If approved, prices of brands like Royal Enfield, KTM, Harley-Davidson, and Triumph could increase by lakhs. The decision is part of a broader plan to simplify GST slabs from four (5%, 12%, 18%, 28%) to two (5% and 18%), with a special 40% rate for luxury goods. The Council is expected to take a final call soon.
“Big Bikes, Bigger Taxes! 🚨🏍️ India is planning to impose a 40% GST on all motorcycles above 350cc as part of the… — fair move or a burden on bikers? 🤔👇 ##gst #motorcycles #taxreform #bigbikes #newsindia #todaynews #royalenfieldindia #superbike #superbikelife #ridersofindia pic.twitter.com/EYwfaUpgrc
— Sujit Kumbhar (@Sujit_Kumbhar_) August 27, 2025