GST 2.0 proposes 18 percent tax on bikes below 350cc and 40 percent tax on bikes above 350cc as it comes into effect from Sep 22 in India.
We earlier reported to you that the Union Government is planning to cut the tax rates on bikes below 350cc engine capacity to 18 percent from the existing 28 percent under the GST 2.0, thus making them affordable for people. Now, with the GST meeting concluding in New Delhi, Nirmala Sitharaman has announced that bikes below 350cc engine would attract 18 percent GST, down from earlier 28 percent. However, the GST has been increased on the bikes above 350cc engine capacity to 40 percent from the ongoing 31 percent, and hence by making them more expensive than before.
As per GST 2.0, the bikes above 350cc engine capacity have been put in the category of sin and luxury goods, which are placed in the highest 40 percent tax slab. It would largely affect major two-wheeler brands like Royal Enfield, Triumph, KTM, Ducati, Harley-Davidson and Kawasaki. The models with engine displacement above 350cc from these brands will now cost more than before.
The new tax slabs for the smaller and bigger bikes would come into effect from Sep 22, 2025. Recently, Siddhartha Lal, Executive Chairman, Royal Enfield, had pleaded to the government to implement a uniform GST of 18 percent on all the two-wheelers, irrespective of their engine displacement. However, it appears as if the government had other things in mind.
Presently, Royal Enfield sells seven models with engine displacement above 350cc in the form of Himalayan 450, Guerrilla 450, Interceptor 650, Continental GT 650, Super Meteor 650, Shotgun 650 and Bear 650. Needless to state, the price of all these motorcycles will increase in the coming days. However, the popular 350cc models like Meteor, Classic, Bullet and Hunter would further come down.
Coming to Triumph, it retails five motorcycles with 398cc engine capacity namely Speed 400, Scrambler 400X, Speed T4, Scrambler 400 XC and Thruxton 400. These are the entry-level models from the British brand priced between Rs 1.99-2.95 lakh (ex-showroom) in the Indian market. However, with the GST 2.0. coming into effect, the price of these popular bikes will further see an upward revision.
Identical to Triumph, KTM also has several mass-market models in its line-up with engine capacity above 350cc such as 390 Enduro R (Rs 3.39 lakh), 390 Duke (2.97 lakh), 390 Adventure (3.68 lakh), 390 Adventure X (3.04 lakh), and RC 390 (3.23 lakh). The price of all these bikes will be higher than before due to the increased tax rates under GST 2.0 in the domestic market.
