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

Posted on: Oct 16, 2025 | 3 mins | Written by: HDFC ERGO Team

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

On 3rd September 2025, there was a 56th GST Council Meeting. Held in New Delhi, the agenda of this meeting was important. GST rates in India need revision to support the Government's vision of long-term growth. As a result, the various GST rates were revised. For instance, your travel cost would also be less now. The GST rate on bikes was also brought into the discussion: Smaller bikes were made more affordable, and premium ones now would be taxed more.

In this article, we will discuss the applicability of new rates, exemptions, if any, and every other latest update.

Applicability of GST on Bikes

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.

An Electronic Waybill has two parts:

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

GST Rate on Bikes and HSN Code

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.

Input Tax Credit (ITC) Availability on Bikes

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.

Frequently Asked Questions

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.

Conclusion

The 56th Goods and Services Tax Council Meeting held in September 2025 brought forward significant changes to how many things, including bikes, are taxed in India. Bikes with an engine of less than 350 cc are now taxed at reduced GST, while premium motorcycles of over 350 cc have seen higher taxation. Electric bikes have the lowest rate, which is 5%. Interestingly, this has remained unchanged, reinforcing India’s push towards sustainable mobility. With HSN code 8711 applicable to all motorcycles, uniform categorisation makes compliance simpler. Additionally, ITC remains restricted except in specific cases like resale, public transport, or training purposes. These changes purely reflect the government’s dual strategy of making everyday commuting cheaper, with long-term growth in mind.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

GST on Bike Insurance in 2025: Rates, Impact & Savings Tips

GST on Two-wheelers/Motorcycles in 2022

How to Add GST Number To Your Bike Insurance Policy?

Impact of New GST Rates on Bike and Scooter Prices

How New GST Rates Are Affecting Two Wheeler Insurance Premiums