GST on Bikes 2025: Rates, Rules and HSN Code India

In India, Goods and Services Tax is applied to almost everything. So, obviously, it is applicable to two-wheelers, including motorcycles, too.

You could be buying a new one from the store or a used one from a friend. GST applies to your bike purchase. It does not matter if you are purchasing an electric or a non-electric motorcycle; you will pay GST to the Indian Government. However, the taxation on an electric bike is way less than that of a regular petrol-fueled bike. The primary reason for this is to ensure India’s movement towards more electric vehicles and focus more on green and clean fuel.

Despite this applicability, there are a few exemptions regarding the GST bike rate. You will have to generate an Electronic Way Bill if you are transporting bikes valued at more than Rs. 50,000. If you are a registered seller, you need to issue the tax invoice. The place of supply, as the name suggests, is dependent on where the goods are being transported to.

Part A contains the following:

1. Recipient’s GSTIN
2. Pin Code
3. Invoice
4. Value of the goods
5. HSN code
6. Transport document number
7. Reasons for transportation

Part B includes the following:

• Details of the transporter

Harmonised System of Nomenclature or HSN codes are a vital part of GST. These codes help in categorising different goods on the basis of their features, allowing proper and uniform taxation. If you understand the HSN codes properly, your understanding of GST and compliance with various rules would be easier. Knowing these codes would also make GST calculation simpler. The HSN code for various two-wheelers like scooters, mopeds, or bikes is 8711.

The GST bike rates in the latest council meetings were also revised. For reference, bikes under 350 cc were earlier taxed at 28 per cent, but now are taxed 10% less, that is 18%. For two-wheelers with an engine capacity of more than 350 cc, the GST rate has increased. These were taxed at 31% (28% GST + 3% Cess), whereas now, these bikes are taxed at 40%.

To promote the EV culture, the taxation on EVs remains the same as before. It's a minimal percentage of 5%.

For instance, let us assume the price of Honda H’ness CB350 (348.36 cc), including all the taxes but GST, is Rs. 2,00,000. Now, if you had bought it before, you would have paid Rs. 56,000 as GST. Now, with the new GST rate, the GST would be Rs. 36,000.

Now, assuming the price of QJ Motor SRK 400 (400 cc), including all taxes but GST, is Rs 4,00,000. Earlier, you would have paid Rs. 1,24,000 in GST. But now, you’d be paying even more. Now, it would be 40% of Rs. 4,00,000, which is Rs. 1,60,000.

Section 17(5)(a) of the Central Goods and Services Act denies the Input Tax Credit on bikes in India. Having said that, there are a few cases where you can claim ITC:

1. If you are using your bike for public transport, you can claim ITC.
2. If you are reselling the bikes, you are allowed to claim a tax credit.
3. You can claim ITC if you are using the bike to train other people how to ride it.

1. How much GST is charged on bikes?

Under the new rates, 18% GST will now be charged on bikes with engines of more than 350cc, and 40% on bikes with engines of more than 350cc. GST bike rate on EVs is at 5%.

2. Can we claim Input Tax Credit on a bike purchase?

No, GST cannot be claimed on a bike purchase in India. But there are a few exceptions, like purchasing a bike for reselling, using it for commercial transportation, or using it to train other people.

3. What is the HSN code of a scooty?

The HSN code of a scooty or any two-wheeler vehicle, such as bikes or mopeds, is 8711.

4. What is the HSN code for bike spare parts?

Covering an array of spare parts like engine parts, brakes, tyres, etc, the HSN code for the bike spare parts is 8714.